1. Exercise 1: Calculating EAR. A credit card company advertises an interest rate of 18%APR, compounded monthly. What is the Effective Annual Rate (EAR) ? 2. Exercise 2: Finding APR from EAR. If a bank account has an EAR of 9% and it compounds interest semiannually, what is its APR? 3. Exercise 3: Simple Interest APR to EAR. If a loan has an APR of 6% but uses simple interest, what's the EAR if the loan is for one year? 4. Exercise 4: Daily Compounding A savings account has an APR of 3.5% and compounds interest daily. What is the Effective Annual Rate? 5. Exercise 5: Comparing Loans. John has two loan offers. Loan A has an APR of 5.5% compounded semi-annually, and Loan B has an APR of 5.4% compounded monthly. Which loan has a lower EAR