Q1Simple Interest versus Compound Interest [LO1]First City Bank pays 8 per cent simple interest on its savings account balances, whereas Second City Bank pays 8 per cent interest compounded annually. If you made a 10,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?

Q2 Calculating the Number of Periods [LO4]At 6 per cent interest, how long does it take to double your money? To quadruple it?

Q3Balloon Payments On 1 September 2012, Susan Chao bought a motorcycle for 15,000. She paid 1,000 down and financed the balance with a 5-year loan at a stated annual interest rate of 9.6 per cent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., 1 October 2012). Two years later, at the end of October 2014, Susan got a new job and decided to pay off the loan. If the bank charges her a 1 per cent prepayment penalty based on the loan balance, how much must she pay the bank on 1 November 2014?