Time Value of Money and Annuities. You want to have $100,000 in 30 years to pay for your long-awaited cruise around the world. You open a savings bank account for this purpose, and you want to reach the above sum by making equal annual deposits. You will make the first deposit today and the last one in 30 years. You are assured to earn an EAR of 5% on money deposited in your account. Your annual payments should be (rounded to the nearest dollar): A. $1,505 B. $1,413 C. $1,179 D. $6,505 E. $6,413 Time Value of Money and Annuities. You take a mortgage of $400,000. The terms of the mortgage are as follows: Forty year mortgage, repaid in equal annual installments, the first installment to be paid one year from now. The mortgage rate is an effective annual rate of 10%. What is the mortgage balance in 5 years time, just after the 5th payment? O A. $350,000 B. $435,386 C. $395,806 D. $433,931 E. $394,482