Problem
• A young graduate has been offered a time-share on a condo in Steamboat Springs, Colorado. To be a part owner, the graduate must pay $1,544.00 at the end of each year for the next 18.00 years. If the graduate's discount rate is 6.00%, what is the cost of this opportunity in today's dollars? In other words, what is the most the graduate should be willing to pay today instead of making payments?
• A couple is buying their dream house for $490,250.00. They will put 20.00% down and finance the rest with a 30.00-year mortgage with monthly payments. The bank has offered them a loan with 4.80% APR and monthly compounding. What will be their monthly payment on this mortgage?