5. The following table indicates money you expect to receive at the end of each...
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5. The following table indicates money you expect to receive at the end of each year, along with the effective interest rate during those years. Year 1-10 11-21 21-30 Amount at End of Each Year Effective Rate During the Year $1,000 4% $2,000 7% $3,000 9% Determine the present value of this series of payments. (a) $22,200 (b) $23,200 (c) $24,200 (d) $25,200 (e) $26,200 6. Henry is repaying a loan of $1,000 with annual payments of $120 for 10 years, followed by annual payments of $100 until the loan is paid off. The amount of interest in the first payment is $100, and the amount of interest in the 12th payment is $X. Determine SX. (Hint: At some point, you should find the balance of the loan after the initial 10 payments of 120.) (a) $63 (b) $65 (c) $75 (d) $78 (e) $80
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