A local banks advertising reads: Give us $45,000 today, and well pay you $800 every year forever. If you plan to live forever, what annual interest rate will you earn on your deposit?

a. 2.49% b. 2.85% c. 1.60% d. 1.78%

Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $67,500. This revision, which will

a. Reduce b. Increase

the interest rate earned on your deposited funds, will adjust your earned interest rate to a. 1.13% b. 1.37% c. 1.25% d. 1.19%)