Question 1

Towline Corporation borrowed $65,000.00 at 10% compounded annually for 14 years to buy a warehouse. Equal payments are made at the end of every year.

(a)	Determine the size of the annual payments.
(b)	Compute the interest included in payment 6.
(c)	Determine the principal repaid in payment period 7.
(d)	Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

Question 2

A lease valued at $18,000 requires payments of $1,900 at the beginning of every three months. If money is worth 9% compounded quarterly, what is the size of the final lease payment?

The size of the final payment is?