Please solve both.

You make you choice to buy a truck from your local used car salesman because the credit offer is they will lend you the money, zero down, regardless of your credit score. The deal is the lower the score, the higher the interest and they fix your truck such that if payments are not made on time, the ignition will not work. You are told your rate will be 15% compounded monthly. What is your effective rate?

	a.	0.1 percent higher
	b.	0.25 percent higher
	c.	0.5 percent higher
	d.	1.0 percent higher
	e.	1.5 percent higher

You make you choice to buy a truck from your local used car salesman because the credit offer is they will lend you the money, zero down, regardless of your credit score. The deal is the lower the score, the higher the interest and they fix your truck such that if payments are not made on time, the ignition will not work. You are told your rate will be 10% compounded daily. What is your effective rate?

	a.	0.1 percent higher
	b.	0.25 percent higher
	c.	0.5 percent higher
	d.	1.0 percent higher
	e.	1.5 percent higher