1)Richard has a retirement account that pays 4% per year compounded monthly

1)Richard has a retirement account that pays 4% per year compounded monthly. Every month for 20 years, Richard deposits $444, with the first deposit at the end of month 1. The day the last deposit is made, the interest rate increases to 6% per year compounded monthly. During retirement, Richard plans to make equal monthly withdrawals for 15 years, thus depleting the account. The first withdrawal occurs one month after the last deposit. How much can be withdrawn each month?

2)You would like to purchase a house. You plan to make a down payment equal to 20% of the purchase price and take out a 30-year, fixed-rate mortgage for the remaining 80%. You would like to select a house such that your monthly payment, including mortgage and taxes, does not exceed $2,200. The annual tax rate is 1.3% of the purchase price and there is a special assessment (a form of tax) for the local school district of $1500 per year. You can assume that 1/12^th of the tax and assessment is paid each month. If the interest rate is 4%/year compounded monthly, what is the most expensive house you can afford?