a. John House has taken a $2,500,000 mortgage on his house at an interest rate of 6 percent per year. If the mortgage calls for 20 equal annual payments, what is the amount of each payment?

a.217961.4

b.243271.8

c.168824.3

d.105000

b. John House has taken a 20-year $2,500,000 mortgage on his house at an interest rate of 6 percent per year. What is the remaining balance (or value) of the mortgage after the payment of the fifth annual installment?

a.1410195

b.2487192.1

c.2116895.3

d.1289584.1

c. Hopper expects to retire in 30 years, and he wishes to accumulate $10,000,000 in his retirement fund by that time. If the interest rate is 12 percent per year, how much should Mr. Hopper put into his retirement fund at the end of each year in order to achieve this goal?

a.40000

b.82873.2

c.124831.7

d.36809.8

d. You would like to have enough money saved to receive a growing annuity for 20 years, growing at a rate of 5 percent per year, with the first payment of $500,000 occurring exactly one year after retirement. How much would you need to save in your retirement fund to achieve this goal? The interest rate is 10 percent.

a.10000000

b.6056042

c.8274312.8

d.4256781.9