Question In purchasing a house that is worth S175,000, you need to obtain a mortgage. Suppose you choose a 30- year fixed rate mortgage with an interest rate/year of 9.74% What is the annual payment required? How much of each year's payment goes to paying interest and how much to reducing the principal balance for the first 15 years? Question#5 Anna just turned 55. She is planning to retire in 10 years, and she currently has $500,00 in her 40lk fund She assumes that she will live 20 years past her retirement age. During each of these 20 years, she desires to withdraw $100,000 from her retirement fund. If the interest rate is 5% annually, how much will Anna have to save per year for the next 10 years (from 55 to 64)? Assume that the first deposit to her retirement fund will be today, followed by nine more annual deposits, and that the annual withdrawals from age 65 will occur at the beginning of each year. Question 6 You are the CFO of Termination, Inc. Your company has 40 employees, each earning a salary of $40,000/year. Employee salaries grow at 4% per year. Starting from next year, and every second year thereafter, 8 employees retire and no new employees are recruited. Your company has in place a pension plan that entitles retired workers to an annual pension which is equal to their annual salary at the moment of retirement. Life expectancy is 20 years after retirement, and the annual pension is paid at year-end. The return on investment is 10% per year, what is the total value of your pension liabilities as of now? Hint: The total value of your pension liabilities will be the sum of the PV of pension liability of each retirement cohort