1) How much (in terms of P) is the difference in the total interest generated by an amount of P dollars invested at an annual simple interest rate of 12% for 6 years, and the same amount invested at a compound annual interest rate 12% for 6 years?

2) If you borrow $2,000 at a 5% annual interest rate and pay $500 each year, how much would the loan balance be at the end of the 4th year?