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1. Investment X offers to pay you $3997 per year for 18 years, whereas Investment Y offers to pay you $9988 per year for 5

1. Investment X offers to pay you $3997 per year for 18 years, whereas Investment Y offers to pay you $9988 per year for 5 years. Both investments have a discount rate of 5.0%. Calculate the present value for Investment X.

2. Investment X offers to pay you $1461 per year for 19 years, whereas Investment Y offers to pay you $6073 per year for 6 years. Both investments have a discount rate of 12.1%. Calculate the present value for Investment Y.

3. First National Bank charges 11.13 % compounded monthly on its business loans. First United Bank charges 11.83%, compounded semiannually. Calculate the EAR for First National Bank.

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