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The total amount of interest paid in a 5 year monthly level-pay loan of $100,000 with interest rate of 4% per annum is approximately (a)
The total amount of interest paid in a 5 year monthly level-pay loan of $100,000 with interest rate of 4% per annum is approximately (a) $1,800 (b) $4,000 (c) $10,000 (d) $20,000 Let R1, R2 be the annual returns of a mutual fund for year 1 and 2 re- spectively. The 2 year average return can be computed as the arithmetic average, RA - (R1 + R2)/2, or as the geometric average RG RiR2. Which statement is true? = V (a) RA > RG (b) RG > RA (c) RG = RA (d) None of the above
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