1. Figure out the payment and future value for a 30-year mortgage of $102,000 with a fixed rate of 3.5% and that compounds monthly. How much interest is paid over the life of the loan? For the same mortgage, suppose you pay a flat amount of $700 each month. How many full months does that shave off the life of the loan? What's the total amount you pay the bank?

2. Create an amortization schedule for a 4-year car loan of $25,000 with a fixed rate of 4.8% that compounds monthly. What's the monthly payment? How much do you pay over the life of the loan?

3. A person takes out a a 4-year car loan of $25,000 with a fixed rate of 4.8% that compounds monthly. Suppose that after the first 6 months, the vehicle owner experiences a financial windfall and decides to apply $3000 towards his/her principal. (This is not a regularly scheduled payment -- this amount is in addition to the payment for month 6 in the life of the loan.) Copy your amortization schedule from #3 and adjust it to reflect this extra payment towards the principal. How many years earlier will the owner be able to pay off his/her loan if he/she continues to make the same payment each month?

4. A person takes out a a 4-year car loan of $25,000 with a fixed rate of 4.8% that compounds monthly. Suppose the vehicle owner simply pays an extra $100 towards the principal each month, starting at the beginning of the loan. How many full months does the increased payment shave off the loan?

5. Suppose you are attempting to save $5,000 for a trip to Australia, over a span of 20 months. You open a special account with a 1.2% rate that compounds every month.

(a.) If you put $300 into the account each month, will you reach your goal? If so, by how much will you