## Question

###### Question 2 (25 marks)Find the effective rate for 1* = 8% compounded monthly.marks)b) James borrowed $3,500 from a bank for his business setup. He plans to repay the debt in a single payment after 4 years. If the interest rate is 7% compounded quarterly, how much is the single payment? marks)Continued. _RAR1/6BMTLAMANAGERIALMATHEMATICS2020What is the future value ofan ordinary annuity at the end of 5 years if $370 is deposited each month into an account earning 2.4% compounded monthly? marks)If S

Question 2 (25 marks) Find the effective rate for 1* = 8% compounded monthly. marks) b) James borrowed $3,500 from a bank for his business setup. He plans to repay the debt in a single payment after 4 years. If the interest rate is 7% compounded quarterly, how much is the single payment? marks) Continued. _ RAR 1/6 BMTLA MANAGERIALMATHEMATICS 2020 What is the future value ofan ordinary annuity at the end of 5 years if $370 is deposited each month into an account earning 2.4% compounded monthly? marks) If S300,000 is to be saved over 25 years, how much should be deposited quarterly if the investment earns 8% interest compounded quarterly? marks) Ryan bought a car with a down payment of RM 3,200 and payments of RM 650 per month for 10 years. If the interest rate is 3% compounded monthly, compute the purchase price of the car and the total interest paid. marks)