4. For the 9 percent mortgage in Exhibit 4, find the loan balance at the end of EXHIBIT 4 Continued) years 19 and 20 5. (a) If the excess $30,000 were invested in a long-term asset yielding 8 per- 575.000) cent a year, how much would be accumulated after 20 years? b) Suppose Studebaker placed $3,052 a year into a long 9% Mortgage (selected years) End of Year paying 8 percent a year. How much would be accumulated after 20 years (amounts invested at the end of each year)? End of Year 16 18 74,447 56,839 4,654 6. Repeat problem 5 but assume a 7 percen 7. Comer's criticisms implied that the single-premium life insurance policy is t return can be earned. 73,194 19 an unattractive investment for Studebaker. What do your previous answers suggest? EXHIBIT 4 Amortization on Studebaker's Existing 7% Mortgage and the New 30-Year, 9% Mortgage* $45.000) 7% Mortgage 63,916 12,841 6,697 13 14 15 30 58,843 End of Year End of Year The annual payment oa the 7 percent mortgage is S4.248. The annual payment on the 9 percent mortgage is $7,300 543,902 2,725 1,47 40,126 38,688 37,148 35,501 33,738 31,852 29.831 13 14 15 16 17 18 19 527,675 25,364 22.892 20,247 17416 14,388 11,147 7,679 10 contiea)