1. Suppose you are buying you first town home for $200,000, and you will make a $20,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 3.99% nominal interest rate, with the first payment due in one month. What will your monthly payments be?
2. What is the future value of the following cash flows. The cash flows occur at the END of the period. Year 1: 1,000 Year 2: 2,000 Year 3: 3,000 Year 4: 5,000 Interest rate = 11.0%