1. Rick just joined a new gym and signed up for a one year membership. Membership fees can be paid in 12 monthly payments of $55, due at the BEGINNING of each month or in one payment today. If the appropriate interest rate is 8%, How much should he pay today for the annual membership?
2. Mortgage Affordability. Paul will be able to save ?$253 per month? (which can be used for mortgage? payments) for the indefinite future. If Paul finances the remaining cost of a ?$85,000 ?home, after making a ?$17,000 down? payment, (amount to finance ?$68.000) at a rate of 4% over 30? years, what are his resulting monthly mortgage ?payments? Can he afford the? mortgage?