1.

29 years and 11 months ago, you took out a 30 year mortgage with a 6% apr. you just made your 359th payment .

A.

if the remaining loan balance right now is $1,000, what is the monthly payment on your mortgage ?

B.

How much will you pay in interest over the last (360th) month of the mortgage ?

2.

your firm is considering either buying or leasing (i.e.,renting) a piece of equipment that will be used for 5 years. you can rent it for $2,000 per year, paid at the end of each year. if you buy it, you would pay a purchase price today and you estimate you could sell it at the end of the five year period for $5,000. if your firm's opportunity cost of capital is 8% what purchase price would make you just indifferent between renting and buying the equipment ?