1. A certain bank is offering a special deal where it will pay 8.57% interest compounded daily (assume 365 days per year). What is the effective annual rate the bank is offering? 2. The Royal Obelisk Hotel recently took out a $12,000,000 loan. The loan will require equal payments at the end of each year for the next 12 years. The interest rate on the loan is 6%. How much of the fourth payment will go towards interest?

2. The Royal Obelisk Hotel recently took out a $12,000,000 loan. The loan will require equal payments at the end of each year for the next 12 years. The interest rate on the loan is 6%. How much of the fourth payment will go towards interest?