1. Sue invested $1,000 eight years ago. If the investment is now worth $2,476, what rate of return has Sue earned on her investment?
12.0%
18.5%
11.4%
-10.7%
None of the answers is correct.
2. You are considering buying a car that costs $15,000. You have arranged to finance $10,000 of the purchase price by borrowing money from your bank. According to the loan agreement, the interest is 6%, compounded monthly, and you must make monthly payments for the next four years. How much are the monthly loan payments?
$234.85
$208.33
$240.49
$352.28
None of the answers is correct.