1. Kenneth's Arrows and Bows borrow $15,000 for one year at 8% interest. What is the effective rate of interest if the loan is discounted?
A. Less than 8.5%
B. More than 8.5% but less than 9.5%
C. More than 9.5% but less than 10.5%
D. More than 10.5%
2. John Doeber borrowed $150,000 to buy a house. His loan cost was 16% annually because of his bad credit score. He promised to repay the loan in 5 years on a quarterly basis.. How much are the quarterly payments?
A. $11,453
B. $45,811
C. $13,113
D. $11,038