1. (10 points) Indicate whether each of the following is true or false. If false, please explain why it is false. (a You can directly compare any two investment options regardless of differing APRs and compounding periods. (i.e., "just by looking at them) (b) If you are investing money, shorter compounding periods are better for you (profit-wise). (c) Amortizing a debt is when a debt is retired in a given length of time by equal, periodic payments, excluding compound interest. (d) Continuous compound interest is what happens when compound interest has an infinite number of compounding periods per year. (e) You can use interest rates in either percentage form or decimal form in formulas as long as you are consistent. 2. (10 points) ome online discount brokerage firms charge commissions based on the transaction amount (principal). Suppose an investor purchases 25 shares of a stock at $51.05 per share. After 175 days the investor sells the stock for $55.17 per share. Using the commissions schedule below, find the annual rate of interest earned by this investment. (Use 360 days for a year.) Commission Schedule Principal $0-$1299 $1300-$4999 $5000+ Commission $10+1.8% principal $15+0.9% principal $20+0.3% principal 3. (15 points) You decide to save for retirement with a company that offers 6.3% compounded annually. You have decided to make $5,000 yearly deposits into the account for the next 30 years. Then for the 35 years following your final deposit, you plan on taking out an equal amount of money at the end of every year. (a) How much will you be able to withdraw each year for the 35 years after your last deposit? (b) How much total interest is earned during this entire 65-year process? 4. (5 points) Assume you buy a cellphone for $600 and agree to pay for it in 6 equal monthly payments at 0.8% interest per month on the unpaid balance. How much are your monthly payments? 5. (10 points) You have the options for banks to start a savings account with shown in the table below. Using APYs, which bank should you choose? Bank Bank of Laradise Wyoming Bucks Rocky Mountain Bank Rate Compounded 4.95% monthly 4.93% daily 4.91% continuously