5. How large a 30-year mortgage can you afford if the rate is 5.12% with monthly payments of $1,500. If the rate increases to 6.25% how much can you afford at the same monthly payment? If the rate increases to 7.25% and 8.25% how large a mortgage can you afford at the same monthly payment?

7. Make a chart showing the total interest paid and the monthly payments for a $400,000 mortgage at 5.87% for 15, 20 and 30 years.

9. The lottery has a $35 million winner. The prize will be 20 yearly payments of $1,750,000. The lottery company wants to deposit a lump sum in a bank paying 5.22% to fund the prize. How much should the lottery company put in the account now to fully fund the stream of payments?

11. Your company gives an award and a bonus to its best salespeople every year. The bonus is quarterly payments of $1,000 for each quarter for the two years following the award. The company has given awards to 18 salespeople in 2008. How much will it have to put in an account paying 5.57 % interest compounded quarterly to fully fund all 18 bonuses?

13. Determine how much you want to have in order to retire at, say 60. Then calculate how much you need to deposit every month for 30 years to achieve that goal. Assume a 6% interest rate. Explain how you determined how much you would need to retire.