ANSWERS MUST BE TYPED Show your work and ALL calculations 1. An APR reflects includes interest only; but an EAR interest. 2. If your credit card carries a rate of 1.6% per month, what is its APR? (Your answer should be a % carried to 1 place) 3. Your credit card carries an annual rate of 19.2% APR with a minimum payment due monthly. If you don't pay the monthly minimum amount for a year, what is its EAR? (Your answer should be a % carried to 2 places.) 4. You invest in a 10-year Tesla bond that pays interest of 4.6% per year. If inflation is 3% per year, what is: a. The exact, real interest rate (Your answer should be a % carried to 3 places), and b. The approximate real interest rate? (Your answer should be a % carried to 1 place) 5. Yield curve questions: a. The US Treasury yield curve provides clues about the future direction of: 1) and 3) b. In a couple of words, why is the US Yield Curve usually upward sloping? c. In a few words, what is an inverted yield curve? d. An inverted yield curve is a prediction of: 2)