Tolerance: Be careful with rounding and do not round until you arrive at the final answer. Answer tolerance is 1 at the last digit based on the decimal place accuracy required by that question. For example, if a question asks you to round to the nearest cent (two decimal places) and the correct is $1,235.06, answers within 0.01 ($1,235.05 to $1,235.07) will count as correct. As another example, if a question asks you to round a percent answer to one decimal place and the correct answer is 4.6%, answers within 0.1% (4.5% to 4.7%) will count as correct.

17 and 18

Consider an amortized loan of $37,000 at an interest rate of 8.1% for 7 years. What is the total interest owed? Round to the nearest dollar.

Suppose you are borrowing $39,000 at an interest rate of 3.4%. You will not make any payments for the first two years. Then, starting at the end of year 3, you will make 5 annual payments to repay the loan. How much will your annual payments be? Round to the nearest dollar.