50: You have just purchased a home and taken out a $300,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 6 %.

How much will you pay in interest, and how much will you pay in principal, during the first year?

How much will you pay in interest, and how much will you pay in principal, during the 20th year (i.e., between time 19 and time 20 from now)?

51: Use the following data to answer the questions. A company is considering the purchase of a copier that costs $5,000. Assume a required rate of return of 15% and the following cash flow schedule:

Year 1: $3,000.

Year 2: $2,000.

Year 3: $2,000.

What is the project's NPV?

A. $309.

B.$316.

C.$436.

D. $1,523.

52: Use the following data to answer the questions. A company is considering the purchase of a copier that costs $5,000. Assume a required rate of return of 15% and the following cash flow schedule:

Year 1: $3,000.

Year 2: $2,000.

Year 3: $2,000.

The project's IRR is closest to:

A. 18.96%.

B.20.18%

C.. 20.64%.

D.20.96%

53: The director of finance for Vodafone Ltd is considering a project with the Following expected net cash-flows: Year Expected Net Cash Flows:

Year Expected Net Cash flows (000)

0 ($1000)

1 310

2 425

3 550

This project has a cost of capital of 6.00% APR compounded annually. What is the Projects NFV? (closest)

A. $158

B. $168

C. $133

D. $132

Exercise 54

You currently have $50,000 available for investment for a 30-year period. At what interest rate APR compounded quarterly must you invest this amount in order for it to be worth $1,000,000 at maturity?

A. 9.88 %

B.10.06 %

C.10.11 %

D.10.51 %

Exercise 60 :

If $10,000 is invested today and $10,000 is invested at the beginning of each of the next five years at 7.5% interest (compounded annually), the amount an investor will have at the end of the fifth year will be closest to:

A). $72,440.

B).$75,563.

C).$76,866. (CIRCLE THE CLOSEST ANSWER)