1:

If the present value of GBP100 to be received in 2 year is equal to GBP94.30, what is the annual interest rate to the nearest percentage point?

Select one:

a.2%

b.3%

c.4%

d.None of the above

2: The 3 month interest rate is 4%. What is the effective annual rate of interest?

Select one:

a:4.00%

b:4.06%

c:4.12%

d.None of the above

3: The 6 month interest rate is 8%. What is the effective 3 month interest rate?

Select one:

a:1.98%

b: 2.00%

c: 2.05%

d: None of the above