1. What is the approximate annual interest rate compounded annually if your money will double in 8 years if it is put in a savings account?
2. Assume you borrow $25,000 at 8% per year interest compounded annually. You pay nothing until the end of 10 years at which time the principal and interest is due.
A. What will be the total amount of repayment (principal and interest) at the end of the 10th year? In this problem you only make one payment; it is at the end of the 10th year.
B. How much interest is paid?