5. You purchase a $320,000 home with a 20% down payment and a mortgage for the balance. How much will your MONTHLY payment be if: a. You get a 15-year mortgage at 6.5%? b. You get a 20-year mortgage at 7.0%? c. You get a 30-year mortgage at 7.8%?

6. After graduation, you enter the military and become an officer. 20 years later you can retire and begin a second career, at which time you intend to start your own small business. You estimate that you will need $200,000 saved with which to start the business. When you graduate, you are given $25,000 in graduation gifts that you will invest at 6% annually. a. How much additional money must you set aside at the end of each year for the 20 years that you are a military officer to meet your goal of $200,000 when you retire and start your business? b. How would this change if you invested the funds at the beginning of each year?

7. Assisted living care facilities are expensive, and when your mother goes into assisted living, she wants a single room with her own bathroom. You anticipate that your mother will need to go into assisted living five years from now, and that her life expectancy at that point will be four years. The cost of assisted living will be $8,500 per month. Your mother currently has $300,000 in assets that are earning 7% annually. In addition to this, how much must she invest each month between now and the time she goes into assisted living to have the total amount needed to pay for her stay in assisted living?