1) The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of 6.85%. (a) How much greater is their mortgage payment if the term is 20 years rather than 30 years? $ (b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan? $

2) Suppose you obtain a 25-year mortgage loan of $195,000 at an annual interest rate of 8.6%. The annual property tax bill is $967 and the annual fire insurance premium is $498. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.) $