$2..$ You buy a house for $$600,000$ with $20\%$ down. The rest is financed at $0\mathrm{.}9\%$ per month for $15$ years. The monthly mortgage payment made at the end of month is $($figures are rounded to closest penny$)$: a$.$$$6\mathrm{.}744\mathrm{.}42$

b$.$ $$1,348\mathrm{.}88$

c$.$ $$2,133\mathrm{.}15$

d$.$ $$3,555\mathrm{.}56$

e$.$ $$5,395\mathrm{.}543.$ Refer to the previous question. After $5$ years of enjoying the house, you it for $$800,000$ and in the process incur a closing cost of $8\%$ of the sales price. The closing cost is for items like real estate sales commission and other charges typically incurred when selling a house. When you sell the house, after you pay off the mortgage, you will walk away with cash of $($to the nearest whole dollar$)$:

a$.$ $$736,087$

b$.$ $$552\mathrm{.}149$

c$.$ $$466,685$

d$.$ $$341\mathrm{.}071$

e$.$ $$405,071$

$4.$ How long does it take for a given sum of money to triple if the interest rate is $0\mathrm{.}030$ percent per day. The answer is provided in days $($rounded up$)$

a$.3,663$ days

b$.4,924$ days

c$.2,152$ days

d$.8,209$ days

e$.$ Cannot be answered with the info given.

$5.$ On behalf of your company, you sign a $15-$year contract for maintenance of lawn and shrub care with a Professional Landscaping Company. The contract stipulates that the first$-$year charge will be $$20,000$ payable at the end of $1$st year. It also includes a statement that the charges for $2$nd and subsequent years will be increasing at a preset rate of $5\%$ per year. If the interest rate is $12\%$ per year, what is the present value of this contract? Mark the correct answer $($very good approximate answer is shown$)$ a$.$ $$969,896$

b$.$ $$472\mathrm{.}203$

c$.$ $$177,196$

d$.$ $$969,896$

e$.$ $$26,016$

$6.$ Jack and Jill want to get married $6$ years from now. To have a nice wedding party, they start saving as follows:

Jack contributes $$500$ every month to an account that pays interest at $9\%$ per year compounded monthly.

Deposits are made at the end of every month.

Jill contributes $$1,500$ every quarter to an account that pays interest at $8\%$ per year compounded quarterly. Deposits are made at the beginning of every quarter.

Together they open a joint savings account and deposit $$10,000$ immediately. The account pays interest at $10\%$ compounded annually.

Together, how much money will J&J have for the wedding at the end of $6$ years? Answer to the nearest dollar. a$.$ $$132,000$

b$.$ $$111,765$

c$.$ $$110,851$

d$.$ $$58,000$

e$.$ $$89,261$

$7.$ Gary signs a $11-$year$/$$$195-$million$-$dollar contract with an undisclosed basketball team where he is offered the following: A starting bonus of $$30$ million, payable immediately, followed by $$20$ million at the end of each of the years $1,2,3,$ and $4,$ followed by $$15$ million at the end of each of years $5,6$ and $7,$ followed by $$10$ million at the end of each of years $8,9,10$ and $11$

If Gary uses an interest rate of $7\%$year, determine the present value of the contract $(2$ decimal place accuracy:

a$.$ $$313\mathrm{.}35$ mil

b$.$ $$195\mathrm{.}00$ mil

c$.$ $$186\mathrm{.}27$ mil

d$.$ $$148\mathrm{.}87$ mil

e$.$ Cannot be determined with info given.

$8.$ Dallas Delights is expected to pay their first annual dividend five years from today. That payment will be $$1\mathrm{.}00$ a share. Starting in year six, the company will increase the dividend by $4$ percent per year. The required return is $12$ percent. What is the value of this stock today?

a$.$ $$4\mathrm{.}98$

b$.$ $$5\mathrm{.}14$

c$.$ $$7\mathrm{.}87$

d$.$ $$6\mathrm{.}50$

e$.$ $$7\mathrm{.}94$