1. Future Value is _________
The exchange rate between money today and money tomorrow
The value of a loan that remains after the interest has been paid.
The amount an investment is worth after it has accrued interest.
The amount an investment is worth now.
The amount an investment is worth after some time has passed.
2. You are considering buying your first home. You expect to be able to get a 30-year mortgage with a 4.775% annual interest rate compounded monthly. If you believe that you can afford payments of $1000 per month, how much can you borrow? (NOTE: Calculate the periodic interest rate first.)
$798,475.74
None of these
$28,225.71
$191,147.83
$338,708.56