1.)

a) $4,000 is invested in a bank account. At what annual interest rate percentage, r, compounded monthly, would the investment have to be to grow to a value of $10,000 in 13 years? Round your value of r to the nearest hundredth of a percent.

b) For a loan of L dollars, with an annual interest rate of r% compounded monthly, and a payment period of n months, the formula below determines the value of P, how much you would have to pay every month for the loan.

Lr r n 1 + 12 12 P 1+ 12