1. ABC had $34,100 in net fixed assets at the beginning of the year. During the year, the company purchased $8,500 in new equipment. They also sold, at a price of $1,400, some old equipment with a book value of $1,200. The depreciation expense for the year was $7,000. What is the net fixed asset balance at the end of the year?

2. A friend will lend you money at a continuously compounded rate of 7.0% per annum. Without good intuition about continuous compounded rates, you would prefer to read this as a simple rate, however. What is the equivalent simple interest rate for this loan?