1)

You have $520 in an account which pays 4.4% compounded annually. How many additional dollars of interest would you earn over 7 years if you moved the money to an account earning 6.8%?

• $1,527.06

  $1,527.06

• $702.92

  $702.92

• $824.14

  $824.14

• $122.22

2)

What is the effective interest rate for a nominal rate of 12%, which is compounded semiannually?

The effective interest rate is %. (Round to three decimal places.)

3)

Your bank offers an annual nominal interest rate of 5% compounded 12 times per year. What is the effective interest rate on the account?

• 0.0557

  0.0557

• 0.05

  0.05

• 0.621

  0.621

• 0.0512

4)

Andy promises to pay Opie $3,000 when Opie graduates from Mayberry University in 11 years. How much must Andy deposit today to make good on his promise if he can earn 7% on his investments?

• $1,425.28

  $1,425.28

• $6,314.56

  $6,314.56

• $6,228.48

  $6,228.48

• $1,444.98