1. Barry Cuda would like to save $210,000 over the next 20 years. He will assume that his account will earn 6% annually. If Barry decides to make annual end of year deposits, how much would he need to deposit annually?
2. You expect to recieve a lump sum payment of 30000 at the end of 17 years. If the appropriate discount rate is 3% per year, what is the present value of that payment?
3. Stasha gets a fully amortizing 30 year fixed rate mortgage with monthly payments for $1,000,000. If the annual contract interest rate is 4.25%, compounded monthly, and Stasha must pay 1.25 points in closing costs, what will be Stasha’s true APR? Round to 2 decimal places; if your answer is ten and half percent, enter 10.50.