1. A borrower takes out a 30-year mortgage loan for $300,000 with an interest rate of 5% and monthly payments. What portion of the first month's payment would be applied to interest?

Answer: $1,340, $1,300, $1,250, or $1,200?

2. A borrower has a 30-year mortgage loan for $300,000 with an interest rate of 6% and monthly payments. If she wants to pay off the loan after 8 years, what would be the outstanding balance on the loan?

Answer: $271,246, $274,886, $266,667 or $263,316?