TIME VALUE OF MONEY 32. Future Value of si John and Mary Rich invested $15,000 in a savings account paying 5.25% interest at the time their son, Mike, was born. The money is to be used by Mike for his college education. On his 18 birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account? A. $42,755.32 B. $30,345.27 C. $35,233.89 D $37,678.11 33. Future Value of Annuity of Si John and Char Lewis' daughter, Debra, has just started high school. They decide to start a college fund for her and will invest $3,000 in a saving account at the end of each year she is in high school (4 payments total). The account will earn 6.5% interest compounded annually. How much will be in the college fund at the time Debra graduates from high school? A. $12,345.74 B. $13,221.52 C. $14,864.39 D. $15,211.28 34. Computing Car Payment Assume you are financing the purchase of a used car with a four-year loan. The loan has a 6% stated annual interest rate, compounded monthly. The price of the car is $8,000. What is the monthly car payment assuming that the payments start one month after the purchase? A $187.88 B. $195.49 C. S203.40 D. $209.57 35. Present Yales of Anasity of SI You are evaluating financing options for a loan on a house. You decide that the maximum mortgage payment you can afford is 5650 per month. The annual interest rate is 8.4%. If you get a mortgage that requires you to make monthly payments over a 30-year period, what is the maximum home loan you can afford? A. 580,455.37 B. $82,349.58 C 585,320.01 D. 590,346.55