A. You are looking at borrowing money from one of two banks. The first bank charges 8% compounded monthly and the second bank charges 8.2% compounded semi-annually. Which bank will you choose for your loan?

B. You have just joined a new company that has offered you a choice of two salary arrangements. You can have $70,000 per year for the next 3 years, or you can have $60,000 per year for the next three years along with an $48,000 signing bonus today. If the interest rate is 9%, which salary arrangement do you prefer?