1. You have just taken out a$25 000 car loan with a 6% APR compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? (Note: Be careful not to round any intermediate steps to fewer than six decimal places.)

2. You have just sold your house for $ 1 000 000in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of$750 000.

The mortgage is currently exactly18.50years old, and you have just made a payment. If the interest rate on the mortgage is5.25%

(APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps to fewer than six decimal places.)

3. You have an outstanding student loan with required payments of $ 550 per month for the next four years. The interest rate on the loan is 9.25 %APR (compounded monthly). You are considering making an extra payment of$200 today (that is, you will pay an extra$200 that you are not required to pay). (Note: Be careful not to round any intermediate steps to fewer than six decimal places.)

a. If you are required to continue to make payments of $550 per month until the loan is paid off, what is the amount of your final payment?

b. What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $ 200?