Question $12$

Suppose that you wish to buy a new home that will cost you $$452,294.$ You must put

$$80,000$ down, and the bank offers you a $5-$year $5\%$ APR negative amortization loan with a

payments $$1,265$ per month, and a balloon payment of $$63,960($your $360$ th payment$).$

How much will your remaining payments be$?$

Question $13$

Suppose that you just turned $25$ years old and decide to put $$5,092$ into investments at the

end of each year until age $60(35$ years from now$).$ You have no savings. Your EAR is $7\mathrm{.}5\%.$

How much will you have by age $60?$