ect Toggle Comment Re-Arrange Plagiarism Download Download All Feedback Create Breakdown Show Breakdown Show Auto Breakdown Price Modal Prev VIPONENT FOUR For the following problem, give answers correct to five significant figures for calculations of R In your answers be sure to define annuities and perpetuities in context. a. b. For an investment of $550 000, an annuity with an interest rate of 5.39% p.a. will give a greater monthly payment than a perpetuity with an interest rate of 5.4% p.a. Assume that the annuity will last 20 years. Compare an annuity and perpetuity: compare the two options, suggest which option is better, include calculations and justify your answer. A housing loan of $380 000 is taken out for 15 years. Interest is charged at 9% per annum adjusted (compounded) monthly. The debt is to be repaid in monthly instalments. Complete the amortisation table for the first five months, assuming $3854 is paid each month. Payment Number n Payment Made ($) Interest Paid ($) Principal Reduction ($) Balance Remaining ($) 0 0.00 0.00 0.00 1 3854.00 380 000.00 378 996.00 2 3 4 5 Total

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