Vikas has just taken out a USD$1,000,000 mortgage at an interest rate of 6% per year. If the mortgage calls for equal monthly payments for twenty-five years, what is the amount of each payment? (Assume monthly compounding or discounting). Monthly rate = 6%/12. Group of answer choices $6,443.01 $4,754.70 $5,065.00 $5,179.06 $5,498.01
Vikas has just taken out a USD$1,000,000 mortgage at an interest rate of 6% per year. If the mortgage calls for equal monthly payments for twenty-five years, what is the amount of each payment? (Assume monthly compounding or discounting). Monthly rate = 6%/12.
Group of answer choices
$6,443.01
$4,754.70
$5,065.00
$5,179.06
$5,498.01
2. You are planning on buying an asset that would expect to generate $6000 per year of cash flows for the next twenty years. You require a return of 8%. What is the price you will pay for this asset?
Group of answer choices
$58,908.88
$53,342.42
$63,956.26
$52,546.89
$72,219.77
3. You have just married and will plan on having one child, expected to be born one year from now. You plan to send your first child to the USA for university studies when he/she reaches the age of 18. You anticipate requiring $1.5 million to finance his/her education for the four-year university education. Assume you want to have $1.5 million when he/she reaches 18. How much must you save per month for the next nineteen years to ensure that you have $1.5 million nineteen years later? Assume that you could reinvest your monthly savings at 5% per annum (or 5/12% monthly).
Group of answer choices
$3954.166
$4214.268
$3781.23
$3148.38
$3877.44
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