QUESTION 11 The FFR is an important inuence on other interest rates, like those on car loans and home loans, because the bank's opportunity cost of lending money to you is that it can't lend on the federal funds market and collect that interest. Imagine you run a bank and the FFR is 2% and will stay 2% for the next 3 years. You are considering lending Anqi $10,000 as a car loan but want to gure out how much interest you could have gotten by lending in the federal funds market instead. How much interest would you accumulate in 3 years from lending at 2% interest? $ (The answer should be a little more than $600 since the interest will compound. Assume it compounds annually like we always do.) (continued) In truth the FFR is unlikely to remain the same for 3 years in a row so suppose your best estimate is that the FFR will have the values in the table below over the next 3 years. You can verify that if you loaned $10,000 at those rates (one year at a time) you would end up with $10,926.24. Expected FFR iiiisissi What was the average growth rate (interest rate) over that time period if your initial amount was $10,000 and it grew into $10,926.24? % (This is the \"average FFR\" that the bank would use to help determine the car loan rate.)