Mr. Johnson wants to buy an annuity due that will provide him with income of $50,000 per year for six years. The going interest rate is 6.25%. How much would it cost him to buy the annuity today?

Suppose you want to buy a $140,000 home. You found a bank that offers a 30-year loan at 3.3% APR. What will be your monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) $ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) S How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) S Search hp

Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically the opposite of a fixed-installment loan: you deposit a fixed amount each month and receive interest based on the total amount that's been saved. The future value formula is: A = [( The future value would be $ 12M 1+ 12 Y where M is the regular monthly payment, r is the annual interest rate in decimal form, and t is the term of the annuity in years. If you chose an annuity with a term of two years at 4.7% and a monthly payment of $100, the future value would be $2511.27. Recalculate the future value amount if you're willing to raise your monthly payment $20 per month. Round your answer to the nearest cent. 121 X 6

A real estate property is on the market.  You have estimated it will give you net cash flows of $5136 per month.  You hope to sell it in 9 years for $308182. Your required return is 9.46%, how much should you be willing to pay for the property today?  Answer:

Yang is considering buying an asset that, starting 5 years from now, will pay $10,000 per year forever. Assume that the required return is 7.25%.  What is the most Yang should pay for this asset?

Use an excel spreadsheet to show steops to solve the following : You buy a house of $450,000 today. You put a down payment of 20% and borrow a fixed-rate mortgage of $360,000 with interest rate of 4% and 15 years. After 3 years, your house is appreciated to the value of $550,000 and market interest rate goes up to 6.5%. How much money will you make in book after 3 years?

Suppose you have $10,000 and  a choice of two alternatives: A) put the money in a savings account that pays 4% per year, and B) buy a stock that has a 50% chance to gain 15% in value after 1 year, and a 50% chance to lose 5%. What will be the expected return for either alternative, and which one would you choose? Why?