1. Mr. John Smith borrowed $200,000 at 7.50% annual interest to buy a house. He has taken a 15 year mortgage and will be making monthly amortization payments. How much will Mr. Smith pay in total interest over the life of this loan?
A $108,667 B. $133,725 C. $225,000 D. $255,168
2. Sara Sharp has invested $50,000 in an account at her local bank. The bank will pay her a constant amount at the end of each year for 6 years and the account's balance will be zero at the end of the sixth year. If the bank has promised Ms Sharp a 10% annual return, how much will they have to pay her each year?
A. $14,763
B. $13,037
C. $12,598
D. $11,480