2. If $200 is placed in an account that carns a nominal 14%, compounded annually, what will it be worth in 7 years? 3. Five different banks in town offer savings accounts that all pay a stated or quoted rate of 10%. However, each bank compounds interest paid on the account differently. If you want to save money in one of these banks, which do you pick? The one that compounds: a. semi-annually b. monthly c. quarterly d. weekly c. annually f. it does not make a difference because they all pay 10% 4) Assunre you will receive $60,000 in 20 years. If the interest rate is 5% compounded annually, what is the present value? 5. Assume that you will invest your money for three years. Which of the following is the best investment over the three-year period? Assume interest is compounded annually for all 3 years. Investment ONE returns 0% the first year, 0% the second year, and 0% the third year. Investment TWO returns 65% the first year, 55% the second year, and -100% the third year. Investment THREE returns 70% the first year, -50% the second year, and 10% the third year. a. Investment ONE b. Investment TWO c. Investment THREE d. You are indifferent between Investment TWO and Investment THREE e. Investment ONE, Investment TWO, and Investment THREE are all the same