7.a

7.b

7.c

7.d

Concerning an ordinary annuity and an annuity due with the same payments (same number of payments and dollar amount) and positive interest rate, which of the following statements is most accurate? The present value of the ordinary annuity is equal to an annuity due. The present value of the ordinary annuity is greater than an annuity due. The present value of the ordinary annuity is less than an annuity due. There is no relationship You want to buy a new house. The bank is willing to make you a 30-year loan at 8% compounded semiannually for 90% of the value of the house. The value of the house is $600,000. How much is your monthly payment? $2,240.56 $3,913.44 $3,987.33 $4,348.27 Sam has invested $10,000 at a rate of 6% compounded quarterly. How long will it take for the investment to grow to $40,000? 1.33 years 23.28 years 50 years 93.11 years You have taken a 20-year $300,000 mortgage loan today at 0.25% monthly interest rate. You will repay the entire loan amount over the next 20 years by making equal monthly payments of $1,663.79 at the end of each month over the 20-year loan term. To the nearest dollar, what will be the principal outstanding after 10 years of monthly payments (right after your 120th payment)? $210,612 O $190,782 $182,425 $172,305