Alberts Hardware would like to borrow $380,000380,000 to renovate their store. Their bank has agreed to lend them the money for 99 months at a rate of 66%. Alberts will also be required to pay a loan administration fee of $7,8007,800 payable at the beginning of the loan period.

a. What is the amount of interest that will be paid?

Answer: $ Answer

Round to nearest whole number (e.g. 1,355)

b. What is the effective annual interest rate?

Answer: Answer

% Round to 2 decimal places (e.g. 4.25)

2. Sarah is looking to expand her flower boutique. Her bank offered her a $13,00013,000, 88 month loan bearing 88% interest payable on a discounted basis.

a. What is the amount of interest that will be paid?

Answer: $ Answer

Round to nearest whole number (e.g. 1,355)

b. What is the effective annual interest rate?

Answer: Answer

% Round to 2 decimal places (e.g. 4.25)