1. Assume you have the following mortgage: Original mortgage = 400,000 Term = 30 years Interest rate = 7% How many months would it take to payoff the mortgage if you added an additional $100 to each normal monthly payment starting with the first payment?
2. Suppose you have a project that has a 0.9 chance of tripling your investment in a year and a 0.1 chance of doubling your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Standard deviation