Question #1 Simple Interest

Mary borrowed $10,657.50 from her bank to build an attached garage and work space on her house. Marys simple interest loan had a rate of 13% and required her to pay $12,250 under the agreed terms. What was the duration of her loan?

Question #2 Annuity Earnings

Jill is saving money in an annuity and is earning 5% annual interest compounded annually. If she deposits $2,500 in the account each year for 10 years, what will the future value of her account equal? How much interest will she have earned?

Question #3 Mortgage Financing

Nina and Tom would like to purchase a new home, but theyre not sure they can afford the $2,420/month mortgage payment. A mortgage company is willing to finance the purchase with a 7% rate and 30-year term. Calculate the amount of money the couple is considering borrowing.

Requirements: