MUST SHOW ALL WORK

(d-2) What is the effective annual rate for 12% interest with daily compounding? (1 point) 8. Will the effective annual rate ever be equal to the simple (quoted) rate? Explain. (1 point) 9. (a) Assume that you have borrowed $1,000 for 2 years and you have an annual interest rate of 12% (annually compounded). What is the monthly payment due on the loan? (1 point) (b) Switch gears here and now assume that the payments are made annually. What is the annual interest expense for the borrower, and the annual interest income for the lender, during Year 17 (Hint: Go to the TVM lecture notes for multiple cash flows and go to slide 15.) (1 point) 10. Suppose on January 1 you deposit $200 in an account that pays a quoted interest rate of 11.33% (APR), with interest added (compounded) daily. How much will you have in your account on October 1, or after 9 months? (assume N = 273 days) Recall that the interest rate (l/Y) represents the periodic rate based on how many times per YEAR the interest is compounded. Hint, this is 365 times per year. (1 point) 11. Now suppose you leave your money in the bank for 21 months. Thus, on January 1 you deposit $200 in an account that pays a 11.33% compounded daily. How much will be in your account on October 1 of the following year? (assume N = 638 days) (1 point)