Determining the monthly mortgage payment

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Suppose you invest $4,600 today in an account that earns a nominal annual rate (i nom) of 12 percent, with interest compounded monthly. How much money will you have after 12 years?

a. $61,824.00

b. $17,921.49

c. $19,276.83

d. $56,253,959,501.18

e. $5,183.40

2.You want to buy a house, and a mortgage company will lend you $260,000. The loan would be fully amortized over 30 years (360 months), and the nominal interest rate would be fixed at 9 percent, compounded monthly. What would be the monthly mortgage payment?

a. $3,347.23

b. $2,092.02

c. $9,710.52

d. $25,307.45

e. $23,400.00

3. What is the future value of an annuity due that pays $2,500 per year for 10 years? The appropriate interest rate is 9 percent.

a. $59,184.09

b. $37,982.32

c. $27,250.00

d. $5,918.41

e. $41,400.73

Reference no: EM133074887

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