2. How much will a $75 deposit made today be worth in 15 years if the interest is compounded semi-annually (twice a year) at a rate of 5\%? [1] 3. How much would you pay to receive $100 at the end of 20 years if you can earn 12% interest on alternative investments of similar risk? [1] 4. How much would you pay today for the right to receive nothing for the next 10 years and $200 a year for the following 10 years if you can earn 14% interest on alternative investments of similar risk? [1] 5. Calculate the NPV and IRR for the following investment: Purchase property for $100,000 in year 0 , cash flows from rental income in years 1 and 2 equal $2000 for each year, cash flows from rental income in years 3 and 4 equal $3000 for each year. You plan to sell the property for $150,000 at the end of year 4. [2] 6. Consider a $250,000 mortgage loan with an annual interest rate of 5.5%. The loan term is 10 years but the monthly payments are based on a 30-year amortization schedule. a. What is the monthly payment? [1] b. What will be the balloon payment at the end of the 10 year term? [1] 7. Consider a $350,000 loan with an annual interest rate of 6% and a 30 -year term. Discount points are equal to 2% of the loan amount. All other up-front costs to be paid by the borrower total $4000. a. Compute the monthly payment. [1] b. What is the effective borrow cost assuming that the loan remains outstanding to maturity (i.e. no prepayment). [1]