$2.$ If the nominal rate of interest is $12\%$ per annum, what is the annual rate

of interest if a$)$ compounded quarterly b$)$ compounded continuously.

$3.$ If the interest rate $($dollars per year$)$ in this year is $10\%,$ next year is $11\%$

and the year after is $12\%,$ find

$($a$)$ The return on investment, if the interest is compounded monthly.

What if the compounding is quarterly?

$($b$)$ What is the value of bond that pays $$100$ at the end of this year,

$$150$ at the end of next year and $$200$ at the end of next next year.

$4.$ Compute the mortgage payment for $20$ years on a pricipal of $1$ million

dollars if the rate of interest is $10\%$ per annum compounded quaterly