Q1:

1. At a simple interest rate of 12% per year, determine how long it will take $5000 to increase to twice as much.

2. Compare the time it will take to double if the rate is 10% per year simple interest

Q2:

A loan of $50,000 is to be repaid in 8 equal end-of-year payments at 10%

a. After 3 years, how much of the loan would be paid?

b .How much would it cost to buy down the interest to 9%?