1

Joe invested $12,000 in a mutual fund six years ago. The investment is worth $25,000 today. If the interest was compounded annually, what is the annual rate of return earned on the investment?

2

You graduated from the University of Toledo and are getting ready to enter the work force. You are planning your monthly expenses and are trying to determine how much you are going to have to pay each month in student loans. You borrowed $35,000 while you attended UT and have an annual interest rate of 3.6%. You know that you can amortize your loan over 20 years. How much is your monthly payment, assuming interest is compounded monthly?

11.5696 . O. 13.3196 13.0196 Od. 12.67% 12.0196 $287.54 b. $204.79 $256.48 O O d d. $1,805.65 $2,484.97