Use the information below to help answer questions 7-8 Today, you deposit $1.234 of cash in a savings account that earns 6% in annualized interest. One interest payment is received at the end of every year. You make no other deposits or withdrawals. 7. In five years, the amount of interest on interest you have camed in your savings account is closest to a) S540 b) S541 c) $542 d) SS43 c) 5544 & Approximately how long will it take for your savings account to reach 52.4687 a) 6 years b) 8 years c) 9 years d) 10 years e) 12 years Use the information below to help answer questions 9.11 Today is January 1". 2020. You take out a S250,000 mortgage with a 6% annual fixed interest rate. The mortgage is a fully amortizing loan that requires you to make payments at the end of each month for the next 25 years. Your first payment is due January 31, 2020. 9. Your monthly mortgage payment is closest to a) $1.610 b) S1,611 c) $1,612 d) $1,613 e) $1,614 10. How long with it take until you have paid off at least 20% of the $250k you originally owed to the bank? a) 8 years, 4 months b) 8 years, 6 months c) 8 years, 8 months d) 8 years, 10 months e) 9 years 11. In three years, you will receive the 1st payment from an irrevocable trust your grandparents set up. The trust is set up make payments forever. The appropriate discount rate is 3.0%. The 1st payment is for $500 and the payments will increase by 1.0% per year every year thereafter. The present value of all the future trust payments is closest a) S22,878 b) S23,564 c) $24,038 d) $24.510 e) $25,000