What is the value of the mortgage after the payment

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Reference no: EM131508545

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 annual 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

Reference no: EM131508545

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