1. A lender makes a $100,000 mortgage at 12% interest with monthly payments for 25 years. How much interest will be paid during the 10th year of the loan?
2. Suppose you purchase goods on terms of 1/10, net 30. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)
3. Suppose zero coupon Treasuries with face value of $1000 are discounted at 2,4 and 6 percent for half ,1 year,and a half year respectively, what are the total returns for the stipulated time horizons?