Billy Thornton borrowed $115,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month? Select the correct answer. a. $692.49 b. $697.09 c. $699.39 d. $694.79 e. $690.19 You plan to borrow $10,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? Select the correct answer. a. $664.65 b. $659.15 c. $670.15 d. $648.15 e. $653.65 You are in negotiations to make a 7-year loan of $49,000 to DeVille Corporation. To repay you, DeVille will pay $2,500 at the end of Year 1, \$5,000 at the end of Year 2, and \$7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. You are confident the payments will be made, since DeVille is essentially riskless. You regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X ? Select the correct answer. a. $13,849.45 b. $13,872.85 c. $13,896.25 d. $13,861.15 e. $13,884.55