10. What is the effective interest rate in each case?

Borrowed $99,000 on June 1, 2021 and repaid $100,000 on June 1, 2022: _____________________%

Borrowed $99,000 on June 1 2021 and repaid $100,000 on December 1, 2021: _____________________%.

Borrowed 895,000,000 on June 1 2021 and repaid 1,000,000,000 on June 1, 2031: _____________________%.

Answers in percentages are to be rounded to three decimal points.

11. Concepts learned in finance can be put to everyday use, for example, figuring out how much you should pay for a house. If your current annual rent payment is $12,000, and you believe that 10 percent is the appropriate discount rate, you would be happy to pay $___________________(in units and no 1,000 separators) for a comparable house.

Meanwhile if you expect the rent to increase by 5 percent each year, and you believe that_____________________ percent (one decimal place) is the appropriate discount rate, it would be reasonable to pay $200,000 for a comparable house (Since there's typically not much difference between twenty/thirty year of cashflows and perpetual cashflows, assume that, for the sake of convenience, the house will last forever).

12. What is the return on investment in each case? Answers in percentages are to be rounded to three decimal points.

Deposited 100,000 at a bank and received 100,010 one year later: ____________________%

Bought a stock for 1,000,000 and sold it 6 months later for 1,080,000: ____________________%

Bought a piece of real estate for 20,000,000 and sold it two years later for 18,000,000: _________________________%