1.You are borrowing money to buy a new $350,000 property. You are offered three options: (1) 30-year mortgage at 6% per year stated interest, (2) 15-year mortgage at 4% per year interest, and (3) 20-year mortgage at 6% per year interest with quarterly payments. Compare each option and discuss the results.

2.The maintenance cost for a car is $500 per year for the first 3 years. Then the cost will increase $50 each year until year 10, when the car will be sold. The interest rate is 5% compounded annually. What is the present worth maintenance cost over the 10 years?

3.A 25-year-old engineer wants to set up a retirement fund. He invests $20,000 now at 6% interest compounded annually and contributes another $5,000 per year. How much will be in the account at retirement at age 65 (n = 40 years)?