1) A mortgage lender will offer 80% financing on a home.  The house you choose is priced at $375,000 and you opt for a 5.50% mortgage loan over 30 years paid monthly. What is your monthly payment amount?  

2) What amount invested each year at 9% annually will grow to $1,600,000 at the end of 30 years? 

 

3) If the payments in #2 were made at the beginning of the year, what amount would need to be invested each year ?

 

4) What is the present value of $25,000 received today, $1,500 received at the end of each of the next six years and $8,000 received at the end of the 7th year , assuming a required rate of return of 6.50% ?