1. You have leased an auto for 3 years at $299 per month. If money is worth 6% per year compounded quarterly, what is the equivalent cash payment presently for this annuity?
2. The Rivera’s secured a bank loan of $312,000 to help finance the purchase of a house. The bank charges interest at a rate of 4.2% per year on the unpaid balance, and interest computations are made at the end of each month. The loan will be paid over 30 years with equal installments monthly. What should be the size of each repayment if the loan is to be amortized at the end of the term?