How do I solve these questions on a step by step basis?

1. Neal wants to borrow S2,500 and has received the following offers from his local banks. Which offer should Neal accept if he wants to repay the loan in one single payment two years from now? Bank A, which offers a simple rate of 4%. Bank B, which offers a simple rate of 5%. Bank C, which offers a rate of 4% compounded annually Bank D, which offers a rate of 5% compounded annually Bank E, which offers a rate of 5% compounded monthly a a. b. 2. To compare interest rates offered by various financial institutions, you should compare the: e a. Quoted rates b. Annual percentage rates. c. Stated annual rates. d. Nominal rates. e. Effective annual rates. This morning, Alicia bought a ten-year bond that pays 7% annual interest. She paid $994 for a $1,000 bond. If the market interest rate on this type of bond declines to 6.5% tonight, how much will Alicia receive for her first interest payment? e 3. a. $32.31 b. $35.00 c. $65.00 d. $69.58 e. $70.00 c 4. Which of the following will increase the effective annual rate? I. Increasing the frequency of the compounding II Decreasing the frequency of the compounding III. Increasing the annual percentage rate IV. Decreasing the annual percentage rate a. b. Ionly c. I and III only d. I and IV only e. I and IV only Which of the following statements is (are) true concerning a time line? 5. I A timeline is a visual drawing depicting cash flows. I As you move leftward on a timeline, you move further into the future. III. Time 0 generally represents today IV. A timeline with no future ending point is a perpetuity a. I and II only b. I and III only c. I and IV only d. I, II, and III only e. II, and IV only e