Question $1$

Sarah borrowed $$10,000$ from a friend and agreed to repay it over a $2-$year period through

equal installments made at the end of each quarter. If an interest rate of $5\%$ per year is

charged on the unpaid balance and interest calculations are made at the end of each quarter.

What is the cumulative Interest for the second payment?

$$2,321$

$$321$

$$3,321$

$$235\mathrm{.}05$

Question $2$

Joseph wants to save for his child's education and keeps $$500$ aside every month for $15$ years

in an account that pays interest of $5\%$ compounded quarterly. How much will be in the

account at the end of $15$ years?

$$44,287\mathrm{.}25$

$$94,287\mathrm{.}25$

$$74,287\mathrm{.}25$

$$4,287\mathrm{.}25$