Sharon purchased a house for $318000. After providing a 20% down payment, she borrowed the balance from the local savings and loan under a 30-year 6% mortgage loan requiring equal monthly installments at the end of each month. Which time value concept would be used to determine the monthly payment?

Present value of one.

Future value of one.

Future value of an ordinary annuity.

Present value of an ordinary annuity

Waterway Industries will receive $1540000 in 7 years. If the appropriate interest rate is 10%, the present value of the $1540000 receipt is

$790266.

$3001029.

$2325400.

$785400.