Engineering economics

15. Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $10 per month to your $540 monthly mortgage payment will reduce how many months from a 30 year, 5% mortgage of $100,000? Select the closest answer (a) 25 months (b) 19 months (c) 13 months. (d) 6 months 16. Suppose a friend of yours invests $100 each month in an individual retiremert account (IRA) for a decade and earns an unbelievable APR of 12% a year (1% per month) on her investment She will end up with $100 (FA, 1%, 120) $100 (230.0387) $23,003.87 after 10 years. If you decide to invest $200 each month over 10 years, but can earn only an APR of 3% per year on it, roughly how much will you have accumulated after 10 years? Choose the closest answer. (a) $19,000 (b) $24,000 (c) $28,000 (d) $46,000