11. Seabee makes quarterly (end of period) payments of $30,000 into a pension fund earning 12 percent compounded quarterly for 10 years. How much interest will have been earned in 10 years?

a. $2,262,030

b. $2,105,880

c. $905,880

d. $1,062,030

12. You have just borrowed $30,000 to buy a new car. The loan agreement calls for 48 monthly payments of $704.55 each to begin one month from today. If the interest is compounded monthly, then what is the effective annual rate (EAR) on this loan?

a. 6.17%

b. 7.06%

c. 6.00%

d. 6.67%

e. 7.54%