1.

Richmond Bank is offering a loan with an interest rate of 5.25%, compounded daily. City Bank is offering a loan with an interest rate of 5.3%, compounded semi-annually. Which bank is offering the better rate?

Answers without mathematical justification will receive a score of zero. You must show complete mathematical reasoning for full marks on this question.

2.

How many years and complete months will it take for Rebecca's money to triple if she invests it at an interest rate of 3.7% compouned quarterly?

3.

The Obisanya family has just received an inheritance and would like to invest a lump sum today to use for their child's education in the future. Their goal is to have $24338 in 15 years. If the account earns 6.95% compounded monthly, how much should they invest now to reach their goal?