Question 3 (7 marks)The residents’ association of a retirement village needs $275 000 to upgrade the village’s facilities.The association obtains a 5-year, interest-only loan for $275 000 that charges a flat interest rate of5.2% per annum.(a) Calculate the quarterly interest payment for the interest-only loan.

The residents’ association of a retirement village needs $275 000 to upgrade the village’s facilities.The association obtains a 5-year, interest-only loan for $275 000 that charges a flat interest rate of5.2% per annum.(a) Calculate the quarterly interest payment for the interest-only loan.(1 mark)In order to repay the loan, the association sets up a sinking fund and plans to make monthlypayments of $4116.44 over the 5 years. The sinking fund earns interest at a rate of 4.3% per annum,compounded monthly.(b) Calculate the total cost of the interest-only loan and the sinking fund

Use a calculator for this exercise.Chuong Ngo borrows $3200 from a bank that advertises a 6% simple interest rate and repays the loan in four equal monthly payments. Estimate the APR. Round to the nearest tenth of a percent. Use the Approximate Annual Percentage Rate Formula.

You are borrowing N$80,000 for 25 years at 10% nominal annual interest. How much must your annual payments be if you will completely retire the loan over the 25-year period by factor formula

John wants to open a showroom and borrows $48,000 on 12% interest rate. He plans to pay this after 4 years. What will that total principal + interest payment be?

Suppose you want to have $400,000 for retirement in 25 years. Your account earns 7% interest. How much would you need to deposit in the account each month to reach your goal?Round your answer to the nearest cent as needed.