What should you be willing to pay today for this annuity

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1. An insurance company offers you an end of year annuity of $35,000 per year for the next 5 years. They claim your return on the annuity is 8 percent. What should you be willing to pay today for this annuity?

2. You borrow $149,000 to buy a house. The mortgage rate is 4.0% and the loan period is 15 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay?

Reference no: EM131839944

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