1. a) The Taylors have purchased a $160,000 house. They made initial down payment of $10,000 and secured a mortgage with interest at the rate of 9%/year on the unpaid balance. b) Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make?

2. Sarah secured a bank loan of $185,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house?