1. Suppose you invest $7,000 in a one-year Japanese bond that pays 1.5% interest. At the time of your purchase, 100 yen equals $1 while one year later, 90 yen equals $1. What will be the value of your investment in one year when measured in dollars?
2. Jake owes $3,000 on his credit card. He is not charging any additional purchases because he wants to get this debt paid in full. The card has an annual rate of 18%. How long does it take to pay off this balance if he makes monthly payments of $30? What if he makes monthly payments of $50?