You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $32,000, $36,000, $74,000, and $111,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 5.4 percent, what is the value of the settlement offer today?

You want to buy a house that costs $275,000. You will make a down payment equal to 10 percent of the price of the house and finance the remainder with a loan that has an interest rate of 5.45 percent compounded monthly. If the loan is for 20 years, what are your monthly mortgage payments?