2.

You and your dog Theodore II have found a home to buy that is selling for $90,000: you will put down $20,000 and obtain a 30-year fixed-rate mortgage at 10% for the remainder. How much interest will you pay (in dollars) over the life of the loan? (Assume you make each of the required 360 payments on time.)

$208,631

$190,056

$151,148

$206,512

$130,586

3.

What is the present value of a stream of ten $1,000 payments that start today? Assume an interest rate of 6.5%.

		$7,069.13
		$7,093.62
		$7,656.10
		$7,914.10
		$8,165.12

4.

You receive 4 payments of $450 per year that start 2 years from now. What is the present value of these payments today given an 9% discount rate?

$1,405.71

$1,231.49

$1,337.50

$1,487.18

5.

You are considering buying a 10 year annuity for $650. The rate of return is 6.5%. What annual cash flow from the annuity will you receive?

$ 90.42

$102.96

$104.33

$114.31

$129.27

6.

What is the present value of a stream of ten $1,000 payments that start today? Assume an interest rate of 6.5%.

		$7,069.13
		$7,093.62
		$7,656.10
		$7,914.10
		$8,165.12