1.

What is the effective annual percentage rate (EAR) of 14 percent compounded semiannually?

2.

Richard Lionheart decides to begin saving toward the purchase of a car in 4 years. If he put $1200 in a savings account paying 7 percent compounded annually at the end of each of the next 4 years, how much will he accumulate after 4 years?

3.

Arthur King purchased a 7-year, 9.3 percent savings certificate for $1000. If interest is compounded annually, what will be the value of his investment when the certificate matures?