1. To buy your first home, you take out a 15 year (fully amortizing) mortgage for $375,000 which requires equal yearly payments. The effective annual interest rate is 3.6%. How much principal do you pay off in year 2?
$19,985.88
$12,805.51
None of the above
$38,277.26
$32.791.39
2. How much must you have saved if the account earns 12% annually if you plan to withdraw $5000 per year for the next 10 years when there is nothing left?
$28,251.12
$87,746.78
$87,743.68
$15,529.24
None of the above