a. Suppose you need to borrow $400,000 to buy a house. The bank of Montreal offers you a 5 year term mortgage with a rate of 7.252% to be amortized over 25 years of monthly payments. What is your monthly payment.

b. You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $300,000 today or receive payments of $3,255.78 a month for 10 years. You can earn 7.5 percent on your money. Which option should you take and why?

c. Beryl retires at age 58 and expects to live to age 90. On the day she retires, she has $287,409 in her retirement savings account. She is conservative and expects to earn 5.25 percent on her money during her retirement years. How much can she withdraw from her retirement savings each month if she plans to die on the day she spends her last penny?

d. You are buying a previously owned car today at a price of $4,950. You are paying $750 down in cash and financing the balance for 42 months at 8.45 percent. What is the amount of each loan payment?

e. Your car dealer is willing to lease you a new car for $199 a month for 72 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 5.45 percent, what is the current value of the lease?