You just received a loan offer from Friendly Loans. The company is offering you $5,000 at 14.15 percent interest. The monthly payment is only $100. If you accept this offer, how long will it take you to pay off the loan?

• A. 6.33 years
• B. 5.29 years
• C. 5.84 years
• D. 6.80 years
• E. 7.59 years

You want to buy a new sports coupe for $41,750 and the finance office at the dealership has quoted you an APR of 8.1, compounded monthly for 48 months. What is the effective interest rate on this loan?

• A. 8.41 percent
• B. 7.94 percent
• C. 8.13 percent
• D. 8.28 percent
• E. 7.87 percent