Question 1(Problem 3.1.5 page 200). Bettey borrows $ 19,800 from bank X. Betty repays the loan by making 36 equal payments pf principle at the end of each month. She also pays interests on unpaid balance each month at a nominal rate of 12% compounded monthly. Immediately after the 16th payment is made, bank X sells the rights of future payments to bank Y. Bank Y wishes to yield a nominal rate of 14% compounded semi-annually, on its investment. What price does bank Y receive?
Book's answer: 10,857.28
Question 2 (Problem 3.1.7 page 200). A 30-year loan of 1000 is repaid with payments at the end of each year. Each of the first ten payments equals the amount of interest due. Each of the next ten payments equals 150% of the amount of interest due.Each of the last ten payments is X. The lender charges interest at an effective annual rate of 10%. Calculate X.
Book's answer: 97.44
I do not get the same answers that the book has.