1. If you can earn 6.5% in simple interest on an investment of $15,000, how much will you have in seven years?

2. The Canadian government has once again decided to issue a consol (a bond with a never-ending interest payment and no maturity date). The bond will pay $60 in interest each year but it will never return the principal. The current discount rate for the Canadian Government bonds is 3.7%. What should this consol bond sell for in the market?