You have just sold your house for $ 900 000 in cash. Your mortgage was originally a30-year mortgage with monthly payments and an initial balance of $ 800 000. The mortgage is currently exactly 18.50 yearsold, and you have just made a payment. If the interest rate on the mortgage is 6.25 %(APR), how much cash will you have from the sale once you pay off themortgage?(Note: Be careful not to round any intermediate steps to fewer than six decimalplaces.)

2You have an outstanding student loan with required payments of $ 500 per month for the next four years. The interest rate on the loan is 9.50 %APR(compounded monthly). You are considering making an extra payment of $ 200 today(that is, you will pay an extra $ 200 that you are not required topay).(Note: Be careful not to round any intermediate steps to fewer than six decimalplaces.)

a. If you are required to continue to make payments of $ 500 per month until the loan is paidoff, what is the amount of your finalpayment?

b. What effective rate of return(expressed as an APR with monthlycompounding) have you earned on the $ 200?

3You have just taken out a $ 27 000 car loan with a 7 % APR, compounded monthly. The loan is for five years. When you make your first payment in onemonth, how much of the payment will go toward the principal of the loan and how much will go towardinterest?(Note: Be careful not to round any intermediate steps to fewer than six decimalplaces.)