1. Suppose you borrowed $15,000 at an annual interest rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. By how much would you reduce the amount you owe (that is, principal) in the first year?
$2,404.91
$2,790.96
$2,658.06
$2,930.51
$2,531.49
2. Suppose you inherited $275,000 and invested it at 8.25% per year. How much could you withdraw at the beginning of each of the next 20 years?
$23,788.03
$25,040.03
$27,675.82
$23,788.03
$26,357.92