1. Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00. Payments of $3000.00 and $4000.00 were made after three months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $4500.00. Seven months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly?

2. A variable rate demand loan showed an initial balance of $8000.00, payments of $3500.00 after six months, $3500.00 after 21 months, and a final payment after six years. Interest was 7% compounded quarterly for the first 21 months and 7.2% compounded monthly for the remaining time. What was the size of the final payment?