1. An aggressive stock trader plans to invest $40,500.00 in the stock market today. He plans to double his money in one year. What interest rate must he earn in the next year to reach his goal?
2. Suppose that your favorite college team surprisingly makes the SEC Championship game in Atlanta. You want to go but you do not have the $9,267.00 needed today to take your family. A friend offers to loan you the money today, but would like his loan returned with 8.00% interest exactly one year from today. How much will you pay your friend in next year?