1. A loan of 80000 at 8% for is to be paid off by annual payments of interest each year for 12 years, with a lump sum of 80000 also to be paid at the end of year 12. The borrower pays the interest at the end of each year and adds an amount K which goes into a sinking fund earning 7% per year. At the end of 12 years, the sinking fund has exactly 80000 to pay off the loan Find K.

2. A loan is to be repaid by 10 level payments. The interest paid on the last payment is 600. Each level payment has value 6000. (a) Find v (b) Find i. (c) Find the amount of the loan L.