Suppose you are buying your first home for a price of $175,000 and you will make a $25,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 4.8% nominal interest rate, with the first payment due in one month. What will the size of your monthly payment be?

$787

$828

$917

$1,024

You inherited rental property that will pay you $18,500 per year for 25 years, with the first payment being made today. If you think a fair return on the property is 8.75%, how much should your asking price be if you decide to sell it today?

$185,461

$223,921

$201,689

$218,042