1. Travis just purchased a new Corvette. To finance this purchase, he paid $40,000 in cash and borrowed $56,000 from his father. Travis has promised to repay his father in 6 equal annual payments at an interest rate of 6 percent. What is the amount of each payment?
$9,333.00
$11,388.31
$11,416.76
$9,633.00
2. What is the effective annual rate of a loan that charges interest at a rate of 7.0 percent, compounded continuously?
7.47 percent
7.14 percent
7.25 percent
7.36 percent