1. Rafael Sandinos parents are in their retirement years. They just received $501,000 after taxes from the sale of their vacation home and decided to invest the money in a bond mutual fund. They chose a no-load mutual fund that yields 6%. a) How much will they receive each year? b) How much would they need to invest if they needed to earn $36,000 per year?

2. Natalia Sandino bought 100 shares of Cendant AT $15 per share and was charged a commission of l.5%. She sold the 100 shares later at $22 1/8 and had a flat commission of $25 through a discount broker. Find the profit, ignoring any dividends.