Question #1 Simple Interest Jerry borrowed $10,657.50 from his bank to build an attached garage and work space on his house. Jerrys simple interest loan had a rate of 13% and required him to pay $12,250 under the agreed terms. What was the duration of his loan?

Question #2 Compound Interest Sam is saving money in an annuity and is earning 5% annual interest compounded annually. If he deposits $2,500 in the account each year for 10 years, what will the future value of his account equal? How much interest will he have earned?

Question #3 Mortgage Financing Dee and Todd purchased a summer getaway in northern Wisconsin. Dees father agreed to finance the purchase with a 2% annual rate, 30-year mortgage. This resulted in a mortgage payment of $772.50/month. Calculate the amount of money the couple borrowed and the amount of interest they will pay over the life of the loan.