Question 1 a) If you want to be paid from a 15-year ordinary annuity with a guar- anteed rate of 4.073% compounded annually, how much should you pay for one of these annuities if you want to receive annual payments of $1,000.00 over the 15-year period? 1) b) Suppose you can afford to pay at most $650 per month for a mort-gage payment. If the maximum amortization period you cab get is 30 years, and you must pay 7,5 What is the monthly interest rate corresponding to the effective? ii) What is the price of the most expensive house you can buy? What is the total interest paid? c) Suppose you take out a mortgage for $500000 at 6.5 i) What is the monthly interest rate corresponding to the effective annual rate? What are the monthly payments? What is the total interest paid? iv) A loan of $ 8000 is to be repaid in 44 equal monthly installments with the first one paid seven months after the loan is made. The nominal annual interest rate is 11 % compounded quarterly. De- termine the amount of the monthly payment. ii) Amount of monthly payment = $_ d) A loan of $ 12,000 is to be repaid within one year with level monthly payments, due at the beginning of each month. The 12 payments equal $ 1,000 each. A finance charge of $ 632 is also due with the first payment. What is the effective annual interest rate on the loan? Effective annual interest rate =