1. John has taken a 20 year, 259,000 mortgage on his house at an interest rate of 6% per year. What is the value of the mortgage after the payment of the fifth annaul installment?
a. $128,958,41
b. $211,698,53
c. $141,019,50
d. $248,719,21
2. You would like to have enough money saved to recive a growing annuity for 25 year, growing at a rate of 4% per year, with the first payment of $60,000 occurring exactly one year after retirement. How much would you need to save in your retirement found to achive this goal?. (The interest rate is 12%).
a. $1,500,000.00
b. $632,390
c. $462,165
d. $1,043,287