1. Suppose that your previous balance on a visa card was 2000 with a APR 22%. You made a payment of $400, then bought $500 worth of clothes charged to your visa. Calculate your finance charges and your new balance.
2. On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a $25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerly’s interest charge for the first month (assuming 31 days in the month)?