1) You want to buy a $218,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.2% interest for the rest. a) How much is the loan amount going to be? $ ____________ b) What will your monthly payments be? $_____________ c) How much of the first payment is interest? $_____________

2) You decide to quit using your credit card and want to pay off the balance of $13,800 in 3 years. Your interest rate is 16.2% compounded monthly. What will your monthly payments be? $____________ How much interest do you pay? $____________