You are planning to buy a house in the near future. To pay for the house, you plan to

take out a 30-year mortgage. You will make monthly payments on your mortgage

with the first payment coming one month after you take the mortgage loan and the

last payment coming 30 years after you take the mortgage loan. Based on your

income and other expenses, you have determined that the highest monthly mortgage

payment you can afford is $1,900 per month. Based on your credit score, the interest

rate on your mortgage will be 3% per year compounded monthly. What is the

maximum amount of money you can borrow and still remain within your budget?

Round all intermediate calculations to 6 decimal points. Your final answer should be

within $5.00 of the correct answer choice.

$684.000

$760.000

$446,890

$450.660

An investment will generate a cash flow each year forever, with the first cash flow

coming one year from today and each subsequent cash flow coming exactly a year

after the previous cash flow. Starting with the cash flow that will come 2 years from

today, each cash flow will be 1.7% greater than the previous cash flow. The discount

rate applicable to this investment is 4.55% per year compounded annually. The value

of this investment is $433,684.21. What is the amount of the first cash flow this

investment will generate? Round all intermediate calculations to 6 decimal points

Your final answer should be within $5.00 of the correct answer choice.

$12.360.00

$7.372.63

$19.732.63

$27.105.26