1. Michael took a $120,000 mortgage. The 18-year mortgage has a 10% nominal annual interest rate, but it calls for semiannual payments beginning 6 months later. What is the dollar amount of each payment Michael pays?

a) $7315.81

b) $7252.13

c) $3500.00

d) $12,401.17

1b. How much interest is included in the first payment?

a) $6,000

b) $12,000

c) $4,800

d) $3,000

1c. How much repayment of principal is included in the first payment?

a) $1,315.81

b) $1,252.13

c) $401.17

d) $500.00

1d. How much interest is included in the 2nd payment?

a) $5,934.21

b) $5,979.94

c) $5,975.00

d) $5,937.39

1e. How much repayment of principal is included in the second payment?

a) $1,272.19

b) $1,314.74

c) $1,277.13

d) $1,317.93