2. A loan is taken for a flat in the metropolis of Morgantown. The home is priced at $550,000 and the mortgage is for $400,000 at 6% APR for 30 years and the payments are made monthly.

(a) What is the mortgage payment? (b) What is the interest on the 125th payment? (c) What is the principal on the 125th payment? (d) What is the total interest paid on the loan during the 30 years? (e) What is the remaining principal amount after the 125th payment is paid? (f ) What is the total interest paid after the 125th payment is paid?

3. Company WV Consolidated has purchased a new 3D printing machine for $300,000 and with a loan $200,000 at 6% interest for 5 years. The annual income (savings) from this machine is expected to be $120,000 and the annual expenses are expected to be $30,000. MACRS-GDS depreciation is used, the 5-year class life is used and the tax rate is 40%. (a) What is the amount of depreciation for the 4th year? (b) What is the book value after the 4th year?

(c) What would be the income taxes due for the 4th year assuming this is the only ma- chine?

(d) What would be the total cash flows for the 4th year? (e) What would be the net profits for the 4th year? (f ) What are the CFAT (15%) at the end of the project? (g) What is the present worth of the profits at 15% return on the project?

2. A loan is taken for a flat in the metropolis of Morgantown. The home is priced at $550,000 and the mortgage is for $400,000 at 6% APR for 30 years and the payments are made monthly. (a) What is the mortgage payment? (b) What is the interest on the 125th payment? (c) What is the principal on the 125th payment? (d) What is the total interest paid on the loan during the 30 years? (e) What is the remaining principal amount after the 125th payment is paid? (f) What is the total interest paid after the 125th payment is paid? 3. Company WV Consolidated has purchased a new 3D printing machine for $300,000 and with a loan $200,000 at 6% interest for 5 years. The annual income (savings) from this machine is expected to be $120,000 and the annual expenses are expected to be $30,000. MACRS-GDS depreciation is used, the 5-year class life is used and the tax rate is 40%. (a) What is the amount of depreciation for the 4th year? (b) What is the book value after the 4th year? (c) What would be the income taxes due for the 4th year assuming this is the only ma- chine? (d) What would be the total cash flows for the 4th year? (e) What would be the net profits for the 4th year? (f) What are the CFAT (15%) at the end of the project? (g) What is the present worth of the profits at 15% return on the project? 4. Resolve the problem in Section 11.3 and Table 11.2 using an investment of $12,000 instead of $10,000 and calculate the annual payment, the interest per period, the principal per period, the PV of principal per period, the unpaid balance each year, and the cumulative total interest paid and the total principal paid at the end of each period using a 15% interest rate. 5. Resolve the Example Problem A (Table 11.4) of Section 11.5 using an investment of $60,000 instead of $50,000 and a loan for $30,000 instead of $20,000 and calculate all the values in Table 11.4 as well as the Present Worth of the Cash Flows and the Present Worth of the Profits using a Minimum Acceptable Rate of Return (MARR) of 15%