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1) You borrow $5,600 to buy a car. The terms of the loan call for monthly payments for four years at a 5.9% rate of interest. What is the amount of each payment?
a. $131.26
b. $133.04
c. $103.73
d. $130.62
e. $103.22
2) You borrow $149,000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay?
a. $226,059
b. $287,086
c. $375,059
d. $138,086
e. $218,161
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