1. JoAnn gets a 6.5% $1,300 loan on October 25, 2007. If JoAnn repays the money on April 18, 2008 (a leap year), how much interest does she owe? Assume the lender uses a 365-day year.
a $40.51
b $40.28
c $40.75
d $40.98
2. Tuition at a local college is currently $3,800 per year. If tuition rates are expected to increase at an annual rate of 4%, what will the annual tuition be 25 years from now?
a $10,130.18
b $4,855.59
c $16,685.30
d $24,382.34