SHOW YOUR WORKI NO WORK SHOW IS ZERO POINT EVEN WY THE VINAL ANSWERS CORRECTI Chapter 3 and 4 Time Value of Money Question 1. (10 points) You've just bought your first house! To finance the purchase you're borrowed a mortgage loan at the following terms: loan amount - $500,000, interest rate -0.05% per month, term - 360 months (6,30 years of monthly payments). What are the monthly payments associated with this loan (Hint: the loan is an annuity!)? Question 2. (10 points) You are about to endow a scholarship at your alma mater. This money will be invested in perpetuity at a rate of 5% per year (assume no growth rate). If you would like the endowment to provide students with $25,000 per year forever, how much must you donate today