Given a nominal rate of 14%, what is the effective annual interest rate if the interest is compounded under each of the following scenarios? Quarterly Monthly Daily Explain the differences. A $1,000 investment has grown to $2, 716 in 8 years. What interest rate (compounded annually) has it earned? An engineer wishes expand his workshop but can only afford monthly payments of $1900. 20-year loans are available at 4.95% interest compounded monthly. If the engineer can make a $24,000 down payment, what is the most he can spend in the expansion? You purchase a work vehicle for $11, 500. You write a check for $2,000 as a down payment for the car and finance the $9, 500 balance. The annual percentage rate (APR) is 6.5% compounded monthly, and the loan is to be repaid in equal monthly installments over the next four years. Calculate your monthly vehicle payment