Sam is getting ready for a big date when he realizes that he has no money. his roommate, bill, also has no money, but he has a credit card. knowing that nobody will let sam use bill’s credit card, sam asks bill to pull out a cash advance for $120.00. bill agrees under the condition that sam is responsible for all interest that accrues on the cash advance which is a 30% interest rate, compounded monthly. 5 full years go by before the $120 cash advance is repaid. how much should bill ask sam to pay in interest for the cash advance?

Transplant operations have become routine. one common transplant operation is for kidneys. the most dangerous aspect of the procedure is the possibility that the body may reject the new organ. there are several new drugs available for such circumstances and the earlier the drug is administered, the higher the probability of averting rejection. the new england journal of medicine recently reported the development of a new urine test to detect early warning signs that the body is rejecting a transplanted kidney. however, like most other tests, the new test is not perfect. in fact, 20% of negative tests and 10% of positive tests prove to be incorrect. physicians know that in about 33% of kidney transplants the body tries to reject the organ. if the new test has a positive result (indicating early warning of rejection), what is the probability that the body is attempting to reject the kidney?