1. Chip and Dale are each investing $62,600 today. Chip will earn 5.6% interest compounded annually, while Dale will earn 5.6% simple interest. Chip will have _____ more than Dale after six years.

1. $2,076

2. $2,582

3. $2,962

4. $3,174

2. Little Friskies has an option that has a strike price of $26.20 and expires today. The value of the stock today is $30.38. When the option was quoted at $3.22, you purchased twenty Little Friskies call option contracts. What is your total profit or loss on your investment?

1. $1,920

2. $2,910

3. $6,230

4. $8,360