Compound Interest and Savings Annuities

Use the information below, answer the following questions. Be sure to show all the steps you took to reach your answers.

Total Amount Invested in compound interest account: $$10,200$

Annual Interest Rate: $4\mathrm{.}6\%$

# times interest is compounded: Monthly

Amount paid into savings annuity account every month for five years: $170$

$1.$ You open a savings account that pays compound interest.

a$.$ Find the total amount $($a$/$k$/$a future value$)$ in the compound interest account after five years, assuming no withdrawals are made.

b$.$ How much of this total amount is interest?

$2.$ Instead of a compound interest savings account, you set up a savings annuity at the same rate as the compound saving account.

a$.$ How much will be in the account after five years.

b$.$ How much of this total in the account is interest?

Mortgage Monthly Payment and Total Interest

Use the information below, answer the following questions. Be sure to show all the steps you took to reach your answers.

Price of the House: $490,000$

Mortgage Interest Rate: $6\mathrm{.}7\%$

Term of Mortgage in years: $20$

$3.$ What will your monthly mortgage payment be$?$ Do not round any intermediate computations. Round your final answer to the nearest cents.

a$.$ Assuming you take the full term of the mortgage, how much will you have paid?

b$.$ How much total interest will you have paid?

c$.$ What percent of the total that you paid was interest?