1. Suppose that you take a mortgage for 20 years, paying $1800 at the end of each month at a rate of 6% APR. Calculate the future value of that mortgage.
A. 876,221.74
B. 1’114,877.71
C. 831,673.61
D. 793,061.22
2. Suppose that you have a business in which you obtain 20 at the end of each year during six years, and at the end of the seventh year you have to pay 150. Mark the right answer:
Suppose that could be only two possible scenarios, r=5% or r=9%.
A. In both cases you do the business.
B. You do the business only in first case (r=5%).
C. You do the business only in second case (r=9%).
D. You don’t do the business in none of the cases.