Directions: Please answer all questions on a separate piece of paper. Show

all work. For any problems dealing with the time value of money, use of the

tables (present and future values, lump sum and/or annuity) is an option you

may employ for those problems which permit such use.

6. Your employer gives you a stock bonus of $1,000 in your company at the
beginning of each year. You plan to retire in 20 years. The stock has a growth
rate of 15 percent per annum. What will the value of your stock be in 20 years?
7. Calculate the monthly payment on a $200,000 mortgage if payment is made
at the beginning of each month and the annual interest rate is 12 percent for 30
years (Hint: remember to treat this as an ordinary annuity).