### The second year will represent repayment of principal

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1. Your company is planning to borrow \$1.5 million on a 3-year, 10%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal places.

2. Kai sells a small magazine full of celebrity gossip to college students for \$2.19 per copy. Hiring the printing press for one day, the only fixed cost, is \$441 an issue. The variable cost of printing each issue is \$1.06 per copy. The printer tells Kai the cost of hiring the press is to increase by \$129 per day

What total contribution is required to cover the new fixed costs and earn \$500 profit per issue?.

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