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3. You currently pay $950 per month in rent and would not be comfortable paying more than this for housing. How much money could you
3. You currently pay $950 per month in rent and would not be comfortable paying more than this for housing. How much money could you borrow to buy a house, assuming a 30-year loan term and a prevailing annual interest rate of 4.65%? 2 4. You will receive a 20-year annuity of $2,750 every month for the next 20 years (the first payment is one month from today, two hundred and forty payments in total) as well as a $125,000 lump sum to be received 20 years from today. What is the present value of these cash flows you will receive in the future if the appropriate discount rate is 7.25% APR
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