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6. You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that the bank charges
6. You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that the bank charges a fixed annual interest rate of 4.50 percent and the term of the loan is 30 years. If you are equal payment every year for 30 years to pay off the loan, what is the annual payment? (Note that banks typically require monthly mortgage payments. For this problem, however, let's assume for simplicity that annual payments can be made.) required to make an 7. Your financial objective is to have $3,000,000 upon your retirement 40 years from now. If you have committed to make an equal annual deposit into an investment account that provides 9 percent annual return, how much will the annual deposit be? 8. If you invest $30,000 a year, every year in an account that earns 8 percent annual return, how long will it take for the balance in the account to reach $2,000,000
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