Question 4 (Mandatory) (14 points) MORTGAGE: You have decided to buy a vacation home in Florida for $250.000. You finance 80% of the cost of the home with a mortgage loan. The interest rate on the loan is 8.75% (APR) per year for a 30-year period. Assume all loan payments are made at the end of the month. How much of your principal have you regaid after 1 month? ( 14 points) a. $1573.40 b. $1458.33 c. $115.07 d. $555.56 Question 5 (Mandatory) (12 points) MULTIPLE CASH FLOWS: My friend Anne is planning to remodel her home. The remodel will require an expenditure of $10,000 one year from now, an expenditure of $8,000 two years from now and an expenditure of $5,000 three years from now. Her ex-husband has agreed to finance the remodeling by investing a lump sum amount today. How large must the amount be if the ex- can earn 7% on his investments? (14 points) O a. $ 21,843.83 b. $ 20,414.79 c. $ 23,000.00 d. $ 26,243.16 1/5 points) Question 6 (Mandatory) (5 points) Shareholder wealth is measured by the -- (5 points) a. book value of the shareholders' common stock holdings b. book value of the company's assets c. market value of the company's assets. d. market value of the shareholder's common stock holdings