1. Short Answer: (a) A bank offers an account with an annual percentage yield (APY) of 5.5%. Assum- ing interest compounds quarterly (every 3 months), determine the rate at which the principal compounds each quarter. (b) A certain drug decays at the rate of 25 % of the amount present each hour. For- mulate a model representing the amount of the drug at each hour. (c) Is the following statement true or false? For a bank account which compounds interest monthly, the Annual Percentage Yield (APY) is higher than 12 times the monthly interest rate. [ True / False ] (d) Suppose we wish to fit a data set (Xi, Yi), i = 1, ..., n, to the curve y = ax2. State the formula for the parameters a which minimizes the sum of squared error (SSE) (equivalently, you can state the equation for a)