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4. An annuity pays $63.92 each period for 4 periods. For these cash flows, the appropriate discount rate / period is 9.1%. What is the
4. An annuity pays $63.92 each period for 4 periods. For these cash flows, the appropriate discount rate / period is 9.1%. What is the period 5 future value of this annuity? 5. In purchasing a house, you need to obtain a mortgage with a present value (loan amount) of $350,000. You have a choice of: (A) a 30 year mortgage at an interest rate/year of 9.74% or (B) a 15 year mortgage at an interest rate/year of 9.46%. Create loan amortization tables for both scenarios and provide your answer for the last question on the second scenario (B) sheet. What is the annual payment required by the two alternative mortgages? How much of each year's payment goes to paying interest and how much reducing the principal balance by the two alternative mortgages? Which mortgage would you prefer (this is the only question that is answered separately from your tables, in other words do not specifically answer the other questions but complete the tables to show the answer)
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