1. A family has a $85,000 30 year mortgage at 7.75% compounded monthly. How much interest was paid during the first twenty year period?
a. $63,705.89
b. $78,835.27
c. $97,025.78
d. $111,889.34
e. $121,625.66
2. A Money Market mutual fund invests in short-term debt securities" True or False.
3. You have $500 that you would like to invest. You have 2 choices: Savings account A which earns 8% compounded annually, or savings account B which earns 7.75% compounded semiannually. Which would you choose and why?