1. You take out a $25,000 30 years mortgage with monthly payments and a rate of 3.5%, monthly compounded. What is your monthly mortgage payment?
2. You take out a $25,000 30 years mortgage with monthly payments and a rate of 3.5%, monthly compounded. What is the loan balance by the end of year 15?
3. Calculate the future value at the end of year 4 of an investment fund earning 7% annual interest and funded with the following end-of-year deposits: $1,500 in at the end of year1, $2,000 at the end of year 2, and $2,500 at the end of year 3, $3,000 at the end of year 4.
4. A company just decided to save $5,500 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pay 4.5% interest compounded monthly. The first deposit will be made today. What would todays deposit amount have to be if the firm opted for one lump sum deposit today that would yield the same amount of savings as the monthly deposits after 6 years?