1. You plan on retiring in 10 years with exactly $1,500,000 in your retirement account. This account will earn 6% compounded monthly. You will withdraw $120,000 each year after you retire to cover your living expenses. How many years can you live off your retirement account?
2. You just purchased a brand new car for $19,600 using a dealer loan at an interest rate of 6.6 percent and zero down payment. The terms of the loan call for equal annual payments for five years, with the first payment made one year from today. Calculate your loan balance just after making your third payment.