1. A loan of $14,000 is negotiated, with the borrower agreeing to repay the principal over ten years as well as to make annual end-of-year payments of interest at 3% effective per annum. A $1,100 total payment will be due at the end of each year during the first five years, and a higher level end-of-year payment will be required during the second five years. The lender will replace his capital by means of a sinking fund earning 6% per annum. Each time he receives a payment from the borrower, he will deposit that portion representing principal into the sinking fund. What will be the lender's yield on the whole transaction, assuming all payments are made as scheduled? (Round your answer to three decimal places.)

2).A loan is repaid with monthly payments for six years, the payments beginning exactly one year after the loan is made. The payments are each $100 during the first year, and each year there is a $15 increase in the monthly payments. If the interest rate on the loan is a nominal rate of 5.5% convertible monthly, find the amount of principal in the fortieth payment. (Round your answer to the nearest cent.)

Please use the arithmetic progression method and don't use excel thank you