Question: 1. You plan to purchase a house. Your generous uncle has offered to pay a 25% down payment to any house your purchase. You did

1. You plan to purchase a house. Your generous uncle has offered to pay a 25% down payment to any house your purchase. You did some math and found that you can reasonably afford $1,000 monthly payments into a 30 year mortgage contract. The bank offers a 7.5% APR, compounded monthly. What is the maximum price of a house you can afford? 2. What is the present value of $2,100 per year received annually at the end of years 2350 if the interest rate is 12% per year

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