1. You borrow $149,000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay?
a. $138,086
b. $218,161
c. $226,059
d. $287,086
e. $375,059
2. Mr. Cole was due to give evaluations of his company's top managers in a few days. He had heard little from Tom Wilson, one of his sales managers, for the past eleven months. On looking over Tom's progress record, Cole saw that Tom usually met his monthly goals. Nevertheless, he was not an outstanding employee. However, this month Tom had submitted a marketing idea that tripled sales for five slow-moving products. When asked to name the outstanding sales manager of the year, Cole could not think of a person more worthy than Tom. Disappointed that they were overlooked, several top managers complained that, in his decision, Cole was
a. discriminating on the basis of gender.
b. allowing recent performance to be overemphasized.
c. allowing poor performance on one activity to influence his overall judgment.
d. discriminating on the basis of race and age.
e. overemphasizing some issues and underemphasizing others.