2. Assume you owe $2,000 today and $2,500 one year from now. You find yourself unable to make that payment today, so you indicate to your creditor that you want to make both payments six months from now instead. Prevailing interest rates are at 4% compounded semi-annually. What single payment six months from now (the proposed payment stream) is equivalent to the two payments (the original payment stream)?

3. Your local bank offers a credit card with a nominal interest rate of 26.44669% compounded monthly. What effective interest rate is being charged