1)Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. You find that the going rate for a home mortgage with a term of 30 years is 5.5% APR. The lending agency says that based on your income, your monthly payment can be at most $790. How much can you borrow? (Round your answer to the nearest cent.)

2)In one instance, a financial institution loaned you $80,000 for two years at an APR of 3.75% for which you must make monthly payments. In a second instance, you loaned a financial institution $80,000 for two years at an APR of 3.75% compounded monthly. What is the difference in the amount of interest paid? (Round your answer to the nearest cent.)