1. A car loan states that the interest rate on the loan is 7.2% % per year. The loan requires monthly payments. Without doing any calculations, would the actual rate of interest be higher, lower or the same as the stated 7.2% annual rate? Explain. (4 points) 2. An investment has an annual percentage rate (APR) of 14.70% and an effective annual rate (EAR) of 15.53%. Explain what these two rates tell you as a potential investor. (4 points) 3. An investment promises to pay the same dollar amount each quarter for the foreseeable future. Is this an annuity or a perpetuity? Why? (3 points) 4. Andrea plans to save $400 per month for retirement. Her retirement account earns 8% per year and she plans to retire in 35 years. In determining the balance in her retirement account when she retires in 35 years, which of these inputs need to be adjusted for monthly compounding. Why? (6 points)