#15

15. An investment will make annual payments. The first 166 6? year from today. The perpetuity. wh make annual payments. The first payment of $2.30 will be made one you require an effective annual rate of return of 11% on your investments, amount of the annual payments will grow at 45% per year in the If at price would you be willing to pay for the investment? A) $24.04 B) $36.98 C) $21.85 D) $33.86 E) $35.38 16. Pey Soon has taken out a 20-year, $150,00 mortgage with monthly payments (made the end of each month) at a stated mortgage rate of 6.8% per year compounded semi-annually. If she makes each payment on time, what will be the mortgage princi remaining after 10 years? A) $119,043 B) $118,765 C) $99,182 D) $146,940 E) $99,497 e the following to answer questions 17-18: tin Case has purchased a $250,000 home by putting 20% down and taking out a 25- ortgage with semi-monthly payments of $600 to finance the rest. The payments wil end of each period. What was the quoted interest rate for the mortgage (with semi-annual comp A) 5.27% B) 5.47% C) 5.41% D) 5.20% E) 5.33% 17. Version A Page 6