1.You want to borrow $50,000 at 6% for 15 years. What will be the annual loan payment to repay this loan?Show the breakdown between the interest and principal portions of the payment in year one.Show the breakdown between the interest and principal portions of the payment in year two.

2.You purchased common stock in PRS Corporation that will pay you dividends of $2.00 for the first year; $2.10 for the second year; and $2.20 the third year. You figure you can sell the stock for $40 at the end of the third year.What is the present value of these amounts at a discount rate of 10%?