16. Larry has decided to pursue the American dream and buy his first home. The home he wants is $150,000. The bank will finance 95% of the home, but Larry will need to come up with the remaining 5% as a down payment. The bank loan will be for 25 years, and require monthly payments, and have an interest rate of 6%. Larry currently has $3,000 in his bank account which earns 4% interest annually. Larry will put aside $500 per year into his bank account. How long until Larry can have the down payment of the house? A. 4 years B. 4.5 years C. 5 years D. 5.5 years E. None of the other Answers 17. Referring back to question \#16, how much will Larry's monthly payment of principal and interest be? A. more than $1,000 B. $1,000 C. less than $1,000 18. Referring back to question \#16, if Larry decides to have a shorter maturity on the loan of 15 years, then the monthly payments will A. increase B. decrease C. Not enough information is provided 19. Bobby has been offered two different compensation plans, and he can only choose one. With Plan A, Bobby will receive $2,500,000 every year for 25 years. With Plan B, Bobby will receive $7,000,000 per year for 5 years. If Bobby's market rate of interest is 10%, which option should Bobby choose? A. Plan A B. Plan B C. Both Plans are the same D. Not enough information is provided 20. Referring back to question \#19, which option should Bobby choose if the market rate of interest is 5% ? A. Plan A B. Plan B C. Both Plans are the same D. Not enough information is provided