You can afford an annual mortgage payment of $12,000 with a 30-year mortgage at 6%. What is the maximum amount you can borrow?

2. You bought an asset for $20,000 and sold it for $30,000 after ten years. What was the annual rate of return on this investment?

3. An investment is expected to generate $20,000 each year for five years. If the firm's cost of funds is 10%, what is the investment worth to the firm today?

4.Tracey deposits $5,000 in a ten-year certificate of deposit paying 4% compounded semiannually. How much will Tracey have at the end of the ten years?