1. Suppose a bank decides to make a mortgage loan to an individual for the purchase of a home. The homeowner will pay the bank $1,500 per month in mortgage payments for the next thirty years. The bank will collect the mortgage payments at the end of the month. If the borrower does not default on the loan, how much money will the bank have accumulated if they could reinvest the monthly income at an annualized rate of 5% for the entire investment horizon?
2. What is the estimated property due of a residential property in Ohio with an estimated fair market value of $435,000 with a $7,500 homestead exemption and a mill of 33?