1. You just purchased your first home for $135,000. As a first time home buyer, you took advantage of a government program that allowed you to put zero down. The interest rate on your thirty-year mortgage is 4.25 percent. Assuming you make all your monthly payments on time, what will be your mortgage balance after exactly eight years of payments?
A. $99,412
B. $117,827
C. $108,095
D. $113,778
2. You just received an offer in the mail to transfer your $10,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 4.8 percent. You plan to make payments of $180 a month on this debt. How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card?
A. 6.10 years
B. 10.76 years
C. 4.39 years
D. 3.05 years
E. 5.45 years