1. You are considering buying a house for $200,000. You have $40,000 in your bank account which pays 1% APR compounded monthly. If you contribute 10% of the price of the house as a down payment, the terms of your mortgage will be an original balance of $180,000 to be repaid over 30 years with equal monthly payments calculated based on an APR of 5% compounded monthly. Call this loan 1. If you contribute 20% of the price of the house as a down payment, the terms of your mortgage will be an original balance of $160,000 to be repaid over 30 years with equal monthly payments calculated based on an APR of 4% compounded monthly. Call this loan 2.

Which loan option should you take ____________ (enter loan 1 or loan 2)

How much better is it in present value terms ____________? Enter the dollar amount with no commas or dollar sign, for example 45784

2. Your sending your daughter to a prestigious private college starting next year. She will attend for four years. The current cost for one year is $60,000, but is expected to rise 2% per year over the next 10 years. The school has a tuition stabilization plan whereby you can pay for the entire four years by writing a single check for $240,000 when your daughter begins college. Otherwise, you simply pay each years tuition as you go. If your investments earn 6% per year, should you pay as you go or take the tuition stabilization plan? How much do you save in present value terms by taking the cheaper alternative?

GIve your answer to the nearest dollar with no dollar sign and no commas. For example 13478.

Please show the steps by using financial caculator. Thanks!