Annu Point of clarity; When we first discussed the Present Value/Future Value questions we discussed the period of time, I said it didn't matter at that point, because I wanted you the concept of compounding. Now, it matters The Present Value/Future Value to grasp questions asked earlier dealt with projects that spanned multiple years (1 period = 1 year) with interest paid once a year With APR/EAR we look at projects that last only one year, but interest is compounded at different intervals within that one-year project life. 1 5a. Assume we have a one-year $100 investment opportunity that pays an annual interest rate of 10% which is compounded quarterly. What is the APR? How much do we have at the end of the period? What is the effective annual rate? 5b. Assume we have a one-year $250 investment opportunity that pays an annual interest rate of 10%, which is compounded quarterly. What is the APR? How much do we have at the end of the period? What is the effective annual rate? 5c. Assume we have a one-year $325 investment opportunity that pays an annual interest rate of 12%, which is compounded quarterly. What is the APR? How much do we have at the end of the period? What is the effective annual rate? 5d. Assume we have a one-year $750 investment opportunity that pays an annual interest rate of 8%, which is compounded quarterly. What is the APR? How much do we have at the end of the period? What is the effective annual rate? 5e. Assume we have a one-year $1,000 investment opportunity that pays an annual interest rate of 4.625%, which is compounded monthly. What is the APR? How much do we have at the end of the period? What is the effective annual rate?