8. You are torn between two saving accounts where to put your $1,500 in scholarship money for a year until you need it for next years tuition. One is in Bank Wan and the other in C-T Bank. Bank Wan is offering a 2.5% nominal rate, with daily - 2 of 3 - compounding of interest, and C-T Bank offers 3.0% with semi-annual compounding. Which one would you chose?

9. Which savings account is better, one paying 5% with yearly compounding or one paying 4.9% with daily compounding?

10. Your brother in law is inviting you to invest some money with him. He argues that he can beat whatever return you are getting from your mutual fund. He is asking you to invest $10,000 today and promises to pay you back $15,000 in five years. If your mutual fund pays you an average annual rate of return of 8%, is your brother in law telling the truth?