1. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,584,500. Unfortunately for the previous owner, he had purchased it in 2008 at a price of $12,624,500.

What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

2. First National Bank charges 11.9 percent compounded monthly on its business loans. First United Bank charges 12.1 percent compounded semiannually.

Calculate the EAR for each bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

	EAR
First National Bank	%
First United Bank	%

As a potential borrower, which bank would you go to for a new loan? First United Bank or First National Bank

3. You are to make monthly deposits of $450 into a retirement account that pays an APR of 10.7 percent compounded monthly.

If your first deposit will be made one month from now, how large will your retirement account be in 32 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Retirement account value in 32 years $