1.Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $1100 quarterly, with payments made at the beginning of each quarter, over the next 8 years. How much can he spend on his boat today if the interest rate is 14.8% per annum compounded quarterly?
2.Jenny wants to borrow money from the mortgage company with the lowest effective annual rate (EAR). Which of the following loan offers will meet her objectives:
A. 6% compounded daily
B. 6% compounded monthly
C. 6% compounded annually
D. 6% compounded continuously