1. Find the interest rates earned on each of the following. Round each answer to two decimal places.
You borrow $740 and promise to pay back $777 at the end of 1 year. %
You lend $740 and the borrower promises to pay you $777 at the end of 1 year. %
You borrow $82,000 and promise to pay back $254,680 at the end of 10 years. %
You borrow $15,000 and promise to make payments of $4,058.60 at the end of each year for 5 years. %
2. Find the present value of 7000 to be received one year from now, assuming 3 percent annual discount interest rate. Also calculate the present value if the 7000 is received after 2 years.