Direction: Read, understand, and answer the following question. (1x15-15 Marks) Interest is fundamental to the function of banking and finance. The idea of interest is central to how people borrow and lend: When you borrow money, you repay a predetermined amount on top of what you were loaned. when you lend money, you stand to earn interest on the money lent out. it's important to look at the different types of interest you could be repaying back. Using your own words show the differences on the types of interests charged on financial products by financial institutions. PART II. NUMERERACY (15 Marks) Direction: Read, understand, and solve the following questions. (5x3-15 Marks) 1. Olivia takes a mortgage of BD 250,000 to purchase a house at a nominal annual interest rate of 5.2%. Calculate the future value of an ordinary annuity with BD 210 monthly payments at 5% annual interest for 15 years. 2. Ahmed invests BD 7 million into an annuity for his retirement. The annuity returns 3% compounded annually. How long will it take BD 9000 to accumulate to BD 27000 if the interest rate is at 8% compounded semi-annually? 3. Lucy takes out a car loan for BD 60000 at an interest rate of 12% simple interest. If a principal of BD 5000 earns simple interest of BD 520 in 9 years, calculate the interest rate, is in effect? 4. Ali lends BD4000 to Ken at 12% per annum and the Khalid lends the same sum to Ahmed at 15% per annum. Find the interest and final amount on BD 2600 at 9% simple interest for 17 years