You have just purchased a car and taken out a $51,000 loan. The loan has a five-year term with monthly payments of $997.87 and an APR of 6.5%. How much will you pay in interest, and how much will you pay in principal during the first month? What is your balance after the first month?

The mortgage on your house is five years old. It required monthly payments of $1,402 had an original term of 30 years, and had an interest rate of 10% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance that is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly payments, and has an interest rate of 6.625% (APR). What monthly payments will be required with the new loan?