Financial Planning Time Value of Money:

Morton notes that the $55,000 in the single premium life insurance policy would grow to $176,392 in 20 years for a return of 6% a year. Explain this return was calculated.

In order to reposition the equity in his home, Studebaker would have to take out a 30-year, $75,000 mortgage at 9 %. Expalin how the yearly mortgage payments on this loan were obtained.