29. Present Value of $1 Assume an investment has an 8% annual rate of return. How much money must be invested now to grow to $1,000,000 in 40 years? A. $38,856.98 B. $58,345.75 C. $46,030.93 D. $85,843.21 30. Present Value of Annuity of 1 You are evaluating financing options for a loan on a house. You decide that the maximum mortgage payment you can afford is $650 per month. The annual interest rate is 8.4%. If you get a mortgage that requires you to make monthly payments over a 30-year period, what is the maximum home loan you can afford? A. $80,455.37 B. $82,349.58 C. $85,320.01 8 19 390 585 D. $90,346.55 31. Computing a Car Payment Assume you are financing the purchase of a used car with a four-year loan. The loan has a 6% stated annual interest rate, compounded monthly. The price of the car is $8,000. What is the monthly car payment assuming that the payments start one month after the purchase? A. $187.88 B. $195.49 C. $203.40 D. $209.57 32. Saving for Retirement Assume you want to start saving for retirement at age 25. You plan on investing $500 per month in a mutual fund that will earn 8% per year. How much will you have in your retirement account when you retire at age 65? A. $242,545.78 B. $552,685.35 C. $780,853.98 D. $1,745,503.92