1. Sam borrowed 1000 on January 1, 1993 to be repaid by level payments every two years beginning January 1, 1995. The annual effective interest rate is 9%. The amount of interest in the fourth payment is 177.72. What is the amount of principal in the sixth payment?
2. Assume you can save $6,800 at the end of Year 1, $7,200 at the end of Year 3, and $9,700 at the end of Year 5. If today is Year 0, what is the future value of your savings 10 years from now if the rate of return is 8.2% annually?