1) You and your sister are planning a large anniversary party 4 years from today for your parents' 40th wedding anniversary. You have estimated that you will need $6,500 for this party. You can earn 2.6 percent compounded annually on your savings. How much would you and your sister have to deposit today in one lump sum to pay for the entire party? A) $7,908.16 B) $3,868.81 C) $1,876.55 D) $7,118.26 E) $5,868.81

2) A credit card has an annual percentage rate of 12.9 percent and charges interest annually. The effective annual rate on this account: A) can either be less than or equal to 12.9 percent. B) can either be greater than or equal to 12.9 percent. C) will be greater than 12.9 percent. D) is 12.9 percent. E) will be less than 12.9 percent.