Suppose someone borrows $1000 from you with a strange promise that he will pay interest on that money forever (his heirs will pay your heirs after you are gone). How much should he pay every year if the annual interest of this loan is 13.4%? Answer to the nearest cent, xxx.xx

You are borrowing $200,000 for an amortized loan with terms that include annual payments,8 year loan, and interest rate of 7.1 per year. How much of the first year's payment would be applied toward reducing the principal? Answer to the nearest cent xxx.xx