1. Theresa just bought a house and will borrow $180,000. The interest rate is 5% per year and the term of the mortgage is 20 years, what will be the amount of her monthly mortgage payments?
2. Karen can afford car payments of $220 a month for 60 months. If the interest rate is 5.5% annually, how much money can she afford to borrow?
3. Bane plans to save $220 a month for the next 30 years and hopes to earn an average rate of return of 10% annually.
a. How much will Bane have at the end of the 30 years if he invests his money at the end of each month?
b. How much will Bane have at the end of the 30 years if he invests his money at the beginning of each month?