1. You are planning for retirement and have calculated that you want to have saved $1,378,000 by the time you retire in 25 years. You have $28,000 now and you also know that you will receive $84,200 from your share of the family cottage in 7 years. Assume an annual return of 9.70% on your funds. How much will you need to save at the end of each of the next 25 years to reach your retirement goal?

2. You want to buy a condo in Toronto that costs $827,300 and have accumulated a 25% down payment. The remainder is financed with a 24-year mortgage over a 4-year term which you have negotiated with a local financial institution. As you are a high risk borrower the best rate you can get is an APR of 4.70% compounded semi-annually with month-end payments. How much would you owe on the mortgage after your 48th mortgage payment?