Question 1: An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the childs birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 920 Second birthday: $ 920 Third birthday: $ 1,020 Fourth birthday: $ 1,020 Fifth birthday: $ 1,120 Sixth birthday: $ 1,120 After the childs sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $430,000. If the relevant interest rate is 12 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Question 2:

Prepare an amortization schedule for a three-year loan of $75,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter ' 0 ' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16