Finance practice problems help.

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8/28/18 Finance Practice Problems You must show intermediate steps. 1. You will make deposits of $1,000 at the end of each year for 40 years in your investment account. After the 40th deposit, you will immediately withdraw all money from the account to buy a retirement annuity for 35 years with equal annual payments (paid at year-end) from a life insurance company. If the annual rate of return over the entire period (75 years) is 5%, how much is the annual payment from the insurance company? 2. The amount of your 25-year mortgage loan is $500,000, and the interest rate is 6% p.a. How much is your monthly loan payment? How much interest will you pay for the 3rd year