2. Annuities; Loan Repayment

4.  Find the 5-year future value of an ordinary annuity with a contribution of $500 per quarter into an account that pays 8% per year compounded quarterly

5.  Harry deposits $200 at the end of each month into an account that pays interest 12% per year, compounded monthly. Find the future value for every 4-month period, for up to 36 months.

7.  Suppose a retiring couple wants to establish an annuity that will provide $2000 at the end of each month for 20 years. If the annuity earns 6%, compounded monthly, how much must the couple put in the account to establish the annuity?

8.  A couple who wants to purchase a home has $30,000 for a down payment and wants to make monthly payments of $2200. If the interest rate for a 25-year mortgage is 6% per year on the unpaid balance, what is the price of the house they can buy?

10.  A couple that wants to purchase a home with a price of $230,000 has $50,000 for a down payment. If they can get a 25-year mortgage at 9% per year on the unpaid balance.  What will be their equal monthly payments?  What is the total amount they will pay before they own the house outright?  How much interest will they pay?

11.  Pages 396-398  1-3,7,11,14,15,17, 18,19,21,23-27