Suppose Rudaifa has an account with BOA. The bank offers her two options for investment. There are

two annuities with equal present values and an applicable discount rate of $7\mathrm{.}25$ percent. One annuity

pays $$2,500$ on the first day of each year for $15$ years. How much does the second annuity pay each

year for $15$ years if it pays at the end of each year?

Suppose your friend, Raafef just won the lottery. The first payment will be $$50,000$ and will be paid

one year from today. Every year thereafter, the payments will increase by $2\mathrm{.}5$ percent annually. What

is the present value of your prize at a discount rate of $5\mathrm{.}25$ percent?

Consider a $$450,000$ mortgage, $25$ year amortization period, and a posted mortgage rate of $6\mathrm{.}25\%$

$($APR$,$ compounded semiannually$).$ What is the value of the monthly mortgage payment?

Suppose Mr$.$ Salem Ahmed has taken out a $20-$year, $$150,000$ mortgage with monthly payments

$($made at the end of each month$)$ at a stated mortgage rate of $6\mathrm{.}8\%$ per year compounded semi$-$

annually. If he makes each payment on time, what will be the mortgage principal remaining after $10$

years?