1. Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You have arranged to finance the remaining $130,000 with a 30-year, monthly payment, amortized mortgage at a 6% nominal annual interest rate, with the first payment due in one month. What will your monthly payments be?
a. $779.42
b. $865.03
c. $798.57
d. $741.77
2. You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end of the 24th month, you will have $13,000 in your account. If the bank compounds interest monthly, what nominal annual interest rate (rounded to one decimal place) will you be earning?
a. 7.6%
b. 8.8%
c. 8.0%
d. 8.4%