1. Your company is planning to borrow $1,000,000 on a 5-year, 15%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?
a) 44.1%
b) 48.0%
c) 51.8%
d) 54.5%
e) 57.2%
2. If you deposit $1,000 every year (starting one year from today) in your bank account and earn 16% on your deposit balance, how much money will you have at the end of four years, assuming that you will make four $1,000 payments?
a) $4,000
b) $5,067
c) $5,877
d) $8,000
e) $8,207