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1. (10 pts) You have entered an agreement to pay $5,000 in 2 years and $10,000 in 15 years. E is this worth today if:

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1. (10 pts) You have entered an agreement to pay $5,000 in 2 years and $10,000 in 15 years. E is this worth today if: (a) The nominal annual interest rate is 4.2% compounded monthly? (b) The effective annual discount rate is 6.3%? 2. (16 pts) Phineas invests $1,000 at a nominal annual interest rate of 4% compounded semi Ferb invests $1,500 at an effective annual rate of 3%. Candace can earn an effective annua rate of 57 HOMmababan

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