1. You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $5,250 with low monthly payments of $95 per month. If the interest rate on the loan is an APR of 14.6 percent compounded monthly, how long will it take for you to pay off the loan?
2. Travis International has a debt payment of $2.34 million that it must make 6 years from today. The company does not want to come up with the entire amount at that time, so it plans to make equal monthly deposits into an account starting 1 month from now to fund this liability. If the company can earn a return of 5.33 percent compounded monthly, how much must it deposit each month?