1. Jane Ranch bought a tractor for $5000. Jane has decided that she could only afford to pay $1,000 per month. Calculate the balance outstanding at the end of month two. Use the U.S. Rule. The monthly interest charged is 5 percent on the unpaid balance.

2. Bill Rose bought a home for $220,000. He put down 10%. The mortgage is at 7.5% for 30 years. What is his annual payment?

 3. Joe Francis purchased a new condominium for $205000. The bank required a $40,000 down payment. Assuming a rate of 8.5% on a 25 year mortgage, what is the monthly payment?  

4. Selling price of a property is $125000, with a $20000 downpayment. The interest rate is 10% for 30 years. If the loan is rewritten for 25 years, what is the difference in the total interest cost of the loan?