12)

You are thinking of purchasing a house. The house costs $350,000. You have $50,000

in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 8%

per year. What will be your annual payment if you sign thismortgage?

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Part 1

The annual payment is

$enter your response here.

(Round to the nearest dollar.)

13)

You are saving for retirement. To live comfortably, you decide you will need to save $3 million by the time you are

65. Today is your 21st birthday, and you decide, starting today and continuing on every birthday up to and including your

65th birthday, that you will put the same amount into a savings account. If the interest rate is 6%, how much must you set aside each year to make sure that you will have $3 million in the account on your 65th birthday?

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Part 1

The amount to deposit each year is

$enter your response here.

(Round to the nearest dollar.)