1. You have $27,000 in an account which pays 2.8% compounded annually. How many additional dollars of interest would you earn over 5 years if you moved the money to an account earning 4.2% compounded quarterly? Round to the nearest cent.

2. A bank advertises an annual interest rate of 1.9% compounded monthly on their savings accounts. In percentage terms, what is the effective annual rate (EAR) on the loan? Round to two decimal places.

3. Suppose you are planning to deposit $3,000 in a bank account. You'd like your deposit to grow to $8,000 in 3 years. If interest in the account compounds weekly, what annual interest rate do you need? Answer in percentage and round to two decimal places. (e.g., 5.43% --> 5.43)

4. Suppose you deposited $3,000 in a savings account earning 4.4% interest compounding annually. How long will it take for the balance to grow to $11,000? Answer in years rounded to two decimal places.

5. Suppose you deposited $2,000 in a savings account earning 3.6% interest compounding daily. How long will it take for the balance to grow to $8,000? Answer in years rounded to two decimal places.

6.

If the applicable discount rate is 2.6%, what is the present value of the following stream of cash flows? Round to the nearest cent.

Cash Flow Year 1: $3,000 Cash Flow Year 2: $4,000 Cash Flow Year 3: $9,000

7. You plan to deposit $2,000 today, $4,000 in one year and $2,000 in two years into an account earning 5.1% interest. What will the account balance be in 4 years? Round to the nearest cent.