Question

investment. Bank fees are currently Steve have saved in three years? 2.5 Roger is conducting a biochemical experiment for the next 12 months. In the first month, the expenses are estimated to be $10,000. As the experiment progresses, the expenses are expected to increase by 2 percent each month. Roger plans to pay for the experiment with a government grant, which is received in four monthly installments, starting a month after the experiment completion date. Draw the cash flow diagram for this experiment. Determine the amount of the monthly installment so that the installments received are equal in value to the expenses incurred. Annual nominal interest is 10 percent, compounded monthly. 2.6 Telus is offering a 2.35 per percent, 7-year corporate bond. If the un ia 100 how much should I pay for the bond if I want to

Answer 1

Month	Amount	Effective interest rate	Month	Periodic Interest Rate	Interest Amount
1	10000	10.43%	12	10.43%	1043
2	10200	10.43%	11	9.56%	975
3	10404	10.43%	10	8.69%	904
4	10612	10.43%	9	7.82%	830
5	10824	10.43%	8	6.95%	753
6	11041	10.43%	7	6.08%	672
7	11262	10.43%	6	5.22%	587
8	11487	10.43%	5	4.35%	499
9	11717	10.43%	4	3.48%	407
10	11951	10.43%	3	2.61%	312
11	12190	10.43%	2	1.74%	212
12	12434	10.43%	1	0.87%	108
	134121				7302
(Assume that expenditure made on first day of the month)
	Total Expenditure	$                     134,120.90
	Total Interest	$                          7,302.44
	Total Expenses	$                     141,423.34
	No. of Installment	4
	Installment Value	$                        35,355.83