Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $2,400 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $2,400 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. How much interest will you earn in the first year? ____________________________

b. How much interest will you earn in the second year?___________________________

c. .How much interest will you earn in the 10th year?_______________________________

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The following are the cash flows of two independent projects:

Year	Project A			Project B
0	$	(390	)	$	(390	)
1		220			290
2		220			290
3		220			290
4		220

a. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	NPV
Project A
Project B

Which of these projects is worth pursuing?

• Project A

• Project B

• Both

• Neither