1a. Suppose you purchase a home for $90,000 by paying a 20% down payment and signing a 30 year mortgage. The fixed annual rate is 6% compounded monthly. After 20 years the market value is expected to be $125,000.

What is the monthly payment?

How much is needed to payoff the loan after 20 years (round to nearest dollar)?

How much equity would you have at that time (to the nearest dollar)?

1b. A company is in need or revenue for a period of 26 weeks. They elect to sell 10,000 T-Bills that will mature to $1000 after the 26 weeks. If the company wants to pay a simple interest rate of 5.2% on the T-Bills, then what price should they charge for each T-Bill and how much revenue (to nearest dollar) will the sale generate?