1. Samantha takes out a loan to purchase a car. If she repays the loan in 10 years, the annual payment will be $1,538. If she repays the loan in 20 years, the annual payment will be $1,072. Both calculations are based on an effective annual interest rate of ii and both payments are made at the end of each year. Calculate ii

Possible Answers A: .087 B: .088 C:.089. D:.090. E:.091

2. A company repays a loan of $200,000 over a fifteen-year period with equal payments at the end of each year. Interest is at the nominal annual rate of 5% compounded semiannually.In which of the following ranges is the total amount of interest paid over the fifteen-year period?

Possible Answers: A: < $75,000. B: $75,000 but < $80,000. C: $80,000 but < $85,000 D: $85,000 but < $90,000. E: $90,000