20) An investment costs $14,000 (cash flow at T = 0) and is expected to produce cash flows of $2,500 at the end of each of the next 7 years, then an additional lump sum payment of $3,000 at the end of the 7th year. What is the expected rate of return on this investment? a. 3.1% b. 6.8% c. 9.4% d. 11.3% e. 12.7% 21) If a bank pays a 3.5% nominal annual rate, with monthly compounding, on deposits, what effective annual rate does the bank pay? a. 2.02% b. 2.53% c. 3.04% d. 3.56% e. 4.07%