John and Peggy recently bought a house. They financed the house with a S125,000. 30-year mortgage with a nominal interest rate of 7 percent. Mortgage payments are made at the end of each month. What total dollar amount of their mortgage payments during the first three years will go towards repayment of principal? You are valuing an investment that will pay you $26,000 per year for the first 9 years. $34,000 per year for the next 11 years, and $47.000 per year the following 14 years (all payments are at the end of each year). Another similar risk investment alternative is an account with a quoted annual interest rate of 9.00% with monthly compounding of interest. What is the value in today's dollars of the set of cash flows you have been offered? You have just won the Georgia Lottery' with a jackpot of $40.000.000. Your winnings will be paid to you in 26 equal annual installments with the first payment made immediately. If you feel the appropriate annual discount rate is 8%. What is the present value of the stream of payments you will receive? You have just w on the Georgia Lottery' with a jackpot of $11.000,000. Your winnings will be paid to you in 26 equal annual installments with the first payment made immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest. What is the present value of the stream of payments you will receive? You are planning for retirement 34 years from now. You plan to invest $4, 200 per year for the first 7 years. $6, 900 per year for the next 11 years, and $14, 500 per year for the following 16 years (assume all cash flows occur at the end of each year). If you believe you w ill cam an effective annual rate of return of 9.7%, w hat w ill your retirement investment be worth 34 years from now