4. A bank offers the following interest rates on your deposit: (Draw the Cashflow) 10% per year, compounded quarterly 9% per year, compounded monthly (a) Determine the effective rate for each on the basis of semiannual periods. (b) What are the effective annual rates? (c) Which bid has the lowest effective annual rate? 5. Suppose you want to buy a Car. You have taken a loan of $25000 from a bank. You will pay monthly and lasts 48 months. (the annual percentage rate, i=12% ), (Draw the Cashflow), then Compute: (a) The monthly payment. (b)After the 20th payment, you want to pay off the remaining loan in a lump sum amount. What is the required amount of this lump sum? Ans. ($658.35, S16008.73) 4. A bank offers the following interest rates on your deposit: (Draw the Cashflow) 10% per year, compounded quarterly 9% per year, compounded monthly (a) Determine the effective rate for each on the basis of semiannual periods. (b) What are the effective annual rates? (c) Which bid has the lowest effective annual rate? 5. Suppose you want to buy a Car. You have taken a loan of $25000 from a bank. You will pay monthly and lasts 48 months. (the annual percentage rate, i=12% ), (Draw the Cashflow), then Compute: (a) The monthly payment. (b)After the 20th payment, you want to pay off the remaining loan in a lump sum amount. What is the required amount of this lump sum? Ans. ($658.35, S16008.73)