1.Suppose you are buying your first house for $550,000, and you will make a $100,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 5.75% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

2.Suppose you borrowed $75,000 at a rate of 12% and must repay it in equal annual installments at the end of each of the next 5 years.

1. How much principal did you pay off during the first year?

2. How much interest would you have to pay during the second year?

3. How much would you still owe after the 4th year?

3.What's the present value of a perpetuity that pays $15,000 per year if the appropriate interest rate is 6.5%?

Your father's employer was just acquired, and he was given a severance payment of $643,500, which he invested at a 7.0% annual rate. He now plans to retire, and he wants to withdraw $65,000 at the beginning of each year, starting at the beginning of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero?

Please answer all questions and show work