1.

You're prepared to make monthly payments of $380, beginning at the end of this month, into an account that pays 11 percent interest compounded monthly.

How many payments will you have made when your account balance reaches $23,966?

2.

You need a 25-year, fixed-rate mortgage to buy a new home for $180,000. Your mortgage bank will lend you the money at a 6.1 percent APR for this 300-month loan. However, you can afford monthly payments of only $800, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.

How large will this balloon payment have to be for you to keep your monthly payments at $800?