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1. Assuming that you employ simple interest methodology, what would be your total investment amount if you invest 1.000 $ for a 5 year period

1. Assuming that you employ simple interest methodology, what would be your total investment amount if you invest 1.000 $ for a 5 year period at an 18% annual interest rate?

a) 1.900 $

b) 900 $

c) 1.200 $

d) 1.500 $

e) Other:

2. Suppose that you obtain a mortgage loan of 100.000 $. Annual rate of interest is 10% and the maturity of the loan is 12 years. You pay annual installments. Now, suppose that you will pay a lumpsum amount of 100.000 $ at maturity to settle the loan. What would be the periodic payment amount?

a) 5.000 $

b) 10.000 $

c) 15.000 $

d) 20.000 $

e) Other:

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