I just want to see how the answers are made

1. Holly wants to have $50,000 available in year 2022. Holly plans to make annual deposits into an account paying 6% in years 2017 through 2020. What size annual deposits does Holly need to make to accomplish her goal?

Answer: $10,172.28

2. Yorgi obtained a $250,000 mortgage with a fixed rate of 5.6% and a 20-year maturity. What are Yorgi's monthly payments on the mortgage?

Answer: $1,733.87

3. Millys father has offered to give her one of the following two options: 1. a cash gift of $10,000 now, or 2. an interest free loan of $50,000 now. The loan would be repaid in five equal annual payments over the next five years. Assume Millys opportunity cost of funds is 7%. In present value terms, which option is better for Milly, and how much better is it?

Answer: The cash gift is better by $1,001.97

4. Jed is considering the purchase of a unit investment trust (UIT) with a three-year life. The UIT promises a payment of $5,000 next year and the payments are expected to grow at 8% per year for the subsequent two years. If Jeds required return on the investment is 9.5%, what should he be willing to pay for the UIT?

Answer: $13,511.83

5. Thomas is considering the purchase of two different annuities. The first begins in three years and pays $1,000 per year for five years. The second begins in 10 years and pays $2,500 per year for seven years. Thomas is currently very risk-averse as he has a young family and little income, and thus his current opportunity cost of capital is 4%. In nine years, Thomas expects to be more financially secure and his cost of capital will increase to 9% from then on. If each annuity costs $5,000 today, which annuity (or annuities), if any, should Thomas purchase? How much value will Thomas realize from his purchase(s), if he makes any purchases?

Answer: He should purchase the second annuity; he will realize $3,840.21 in value