Problem
1. What is the future equivalent of $1,000 invested at 6% simple interest per year for 3½ years?
2. Jonathan borrowed $10,000 at 6% annual compound interest. He agreed to repay the loan with five equal annual payments at end-of-years 1-5. How much of the annual payment is interest, and how much principal is there in each annual payment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.