1. What annual payment is required to pay off a four-year, $12,000 loan if the interest rate being charged is 7 percent EAR? What would the monthly payments be for the same loan assuming the same interest rate?

 

2. Ben Collins plans to buy a house for $281,000 If that real estate property is expected to increase in value by 8 percent each year, what will its approximate value be seven years from now?