P4-40 (similar to) Question Help You have just made an offer on a new home and are seeking a mortgage. You need to borrow $587,000. a. The bank offers a 25-year mortgage with fixed monthly payments and an interest rate of 0.54% per month. What is the amount of your monthly payment if you take this loan? b. Alternatively, you can get a 15-year mortgage with fixed monthly payments and an interest rate of 0.36% per month. How much would your monthly payments be if you take this loan instead? You are saving for retirement. To live comfortably, you decide you will need to save $2,000,000 by the time you are 65. Today is your 23rd birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 6%, how much must you set aside each year to make sure that you will have $2,000,000 in the account on your 65th birthday? The amount to deposit each year is $ (Round to the nearest dollar.) You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 8% per year. You cannot make withdrawals until you retire on your 70th birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 70. You estimate that to live comfortably in retirement, you will need $95,000 per year starting at the end of the first year of retirement and ending on your one hundredth The value of the annuity is $ (Round to the nearest dollar.)