4. Ily= 5/2=2.5 off: 4% If an investment of $5,000 grows to $6,500 in 10 years compounded monthly, what is the annual rate of return? 10x12=120 65oo PV=5,000 -5000 1500 FV=6,500 N - 100 Ily /2 interest = 1500 5. A student owes the bookstore $900 and doesn't have the money to pay the full balance. The college offers two payment options: 1. Pay $300 today and $700 in two years. 2. Pay $1200 three years from today. Assuming the cost of money is 6% compounded annually, which alternative should be selected? Show all computations which support your selection