1. You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 8 percent interest compounded monthly. You can afford monthly payments of $1050. How much can you afford to borrow? Assume the mortgage is for 22 years.
2. You currently have $20000.00 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?