1.Six years ago, James invested $3500 into an account. No other investments or withdrawals have been made. Today, the account is worth 7,403.16. what rate of return has James earned so far?

2.You are considering two salary offers. The first one will pay you $80,000 a year for two years. The second one will pay you $60,000 a year for two years and an $35,000 additional bonus, paid today.

The salaries would be paid in a lump sum at the end of each year. If the interest rate is 5%, compounded monthly, which is the better offer?

3.Complete the gaps in the following table.

Normal APR # of compounding periods Rate per period Equivalent annual rate

10.75% 52 0.207%

4 3.12%

12% 365 0.03287%

4.Your deposit $10000 in an account today you will deposit $600 at the end of each month for the next twelve months and $800 per month for the following twelve months. How much interest will you have earned in two years in the accounts pays 5.5% compounded monthly?