1. A company borrows $10,000 from a bank. It is a 5-year amortized (equal payments) loan with an interest rate of 10%. How much principal will be paid in year 1?

Group of answer choices

a. $2,757

b. $804

c. $1,638

d. $1,236

2. You want to put money into an account today so that you will be able to make a $20,000 down payment on a house in 5 years. This is the only money that you will put into the account. How much do you need to put into the account today if it earns 4% annually for 5 years?

Group of answer choices

a. $18,374

b. $16,438

c. $12,053

d. $9,982