14. In which case will an investor receive the most interest (i.e., which of the following rates has the largest effective annual return)?

a. 4.14% p.a., compounded semiannually.

b. 4.12% p.a., compounded every 2 months (i.e., 6 times per year).

c. 4.09% p.a., compounded monthly.

d. 4.05% p.a., compounded daily (assume 365 days per year).

e. 4.00% p.a., compounded continuously.

f. There is not enough information provided to correctly answer this question.

15. In which case will an investor receive the most interest:

a. 16.14% p.a., compounded semiannually.

b. 16.12% p.a., compounded every 2 months (i.e., 6 times per year).

c. 16.09% p.a., compounded monthly.

d. 16.05% p.a., compounded daily (assume 365 days per year).

e. 16.00% p.a., compounded continuously.

f. There is not enough information provided to correctly answer this question.

20. Which of the following will increase the future value of the mixed cash flows for years 1 through 5 of $9,000; $4,000; $1,000; $5,000; and $2,000 respectively given a 10% discount rate? (There may be more than one correct answer for this question; you MUST enter all of the correct answer choices, and only the correct answer choices, to receive any credit that is, this is an all or nothing question).

a. Increase the discount rate by 2%.

b. Switch cash flows for years 1 and 5 so that year 1 is $2,000 and year 5 is $9,000.

c. Switch cash flows for years 2 and 4 so that year 2 is $5,000 and year 4 is $4,000.

d. Switch cash flows for years 2 and 5 so that year 2 is $2,000 and year 5 is $4,000.

e. Switch cash flows for years 3 and 4 so that year 3 is $5,000 and year 5 is $1,000.

f. Decrease the discount rate by 2%.