A manager borrows $15,000 for a new sound system. The person who loaned the money asks 7% interest compounded annually. The full amount of the loan together with the accumulated interest is to be repaid in two years. How much must be repaid in two years? An investor (owner) has an option to purchase a tract of land that will be worth $10,000 in six years. If the value of the land increases at 8% each year, how much should the investor be willing to pay now for this property? What is the amount of interest earned on $2,000 for five years at 6% interest per year? How many years will it take an investment to double if the interest rate is 8% compounded annually? What is the difference between individual stocks and mutual funds? Which one is more risky? Why? What is IRA? What is the difference between traditional IRA and Roth IRA? If you have money to invest in an IRA, which one would you choose? Why