1. An investor is considering the following $1,000,000 financing package:

$500,000; 5% interest; monthly payment; 15 years

$300,000; 4% interest; monthly payment; 10 years

$200,000; 3% interest; monthly payment; 5 years

What is the combined interest percentage cost (effective cost) of this financing package?

2. A bank makes a loan of $100,000 and will receive payments of $625.00 each month for 30 years. What is the percentage return to the bank for making this loan?

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