1. Suppose you invest $800 in a fund that earns interest at a rate of 3% convertible monthly. If you keep the money in the fund, how much will you have at the end of 15 years?

(A) $1242 (B) $1246 (C) $1250 (D) $1254 (E) $1258

2. At a nominal annual rate of interest of j convertible quarterly, an investment of 166 today and 105 at the end of one year will accumulate to 291 at the end of the second year. Calculate j. (Hint: Compare with problem 5.)

(A) 3.94% (B) 4.43% (C) 4.91% (D) 5.39% (E) 5.87%

****PLease explain in detail!!