2.

(Compound annuity) You plan on buying some property in Florida 7 years from today. To do this, you estimate that you will need $25,000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits in your savings account, which pays 14 percent annually. If you make your first deposit at the end of this year, and you would like your account to reach $25,000 when the final deposit is made, what will be the amount of your deposits? The amount of your end-of-year deposits will be $ (Round to the nearest cent.) (Loan amortization) To buy a new house, you must borrow $140,000. To do this, you take out a $140,000, 25-year, 12 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 12 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payments will be $ (Round to the nearest cent.)