32. Assume that you want to buy a house that costs $350,007 dollars. If you make a 20% downpayment, the APR is 3.77% on a 30-year mortgage. If you make a 10% downpayment, the APR is 4.58% on a 30-year mortgage. Compute how much less you have to pay per month if you make the 20% downpayment.

33. Compute how much a business is worth if it is expected to generate cash flows to its owners of $0 next year, $22,900 in two years, $34,800 in three years, then $54,000 per year for the subsequent 7 years (i.e., $54,000 per year after three years in the future and then continuing for the next U years until 3+U years into the future), and finally generates cash inflows to its owners of $75,000 per year thereafter forever (i.e., $75,000 forever after 3+U years), assuming that businesses with similar relevant risk have expected returns of 12%.

34. Compute the annual expected return on a stock which has a market price of $112, pays no dividends, and is expected to sell for $137 dollars in 5 years.