1. Annie lends you $50 today and you agree to pay him $55 in one week. What is the quoted Annual Percentage Rate on this loan given there are 52 weeks in a year?
2. How much do you have to deposit today so that beginning 11 years from now you can withdraw $9,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $18,000 in the last year? (period 15)? Assume an interest rate of 9 percent.