E. Which would be the better deal: to invest your money with Bank of America which pays 13% interest compounded semiannually or with the First National Bank which pays12% compounded monthly? ______________________________

F. Congratulations! You have just won $20 million lottery. You will be paid $1 million a year for the next 20 years and you receive your first check today. Ignoring, for the moment, the taxes youll have to pay, what are your winnings really worth today? Assume an 7% discount rate. _________________________

G.Which amount is worth more at 14%: $1,000 in hand today or $2,000 due in six years?