A loan of $40,000 is to be repaid in equal annual installment consisting of principal and interest due in course of 30 years. Find the amount of each installment reckoning interest at 4% p.a.
A machine costs a company $65,000 and its effective life is estimated to be 25 years. A sinking fund is created for replacing the machine by a new model at the end of its life time, when its scrap realizes a sum of $2,500 only. Calculate what amount should be provided every year out of profits for the sinking fund if it accumulates at 3½ per cent per annum compound.
Calculate the amount and present value of an annuity of $3000 for 15 years if the rate of interest be 4½% p.a.
Minhajur Rahaman
