Question 18 (4 points) Which of the following investments has the highest effective return? (All are of equal risk.) O A bank CD which pays 10 percent, compounded monthly. A bank CD which pays 9.6 percent, compounded daily (on a 365-day basis). A bank CD which pays 10.5 percent, compounded annually. O A bank CD which pays 10 percent, compounded quarterly. A bank CD which pays 10.3 percent, compounded semiannually. Question 19 (4 points) An investment pays 4.00 percent interest, compounded semiannually. A second investment of equal risk, pays interest compounded monthly. What nominal rate of interest would you have to receive on the second investment in order to make you indifferent between the two investments? Your Answer: Answer units Question 20 (4 points) You are contributing money to an investment account so that you can buy a house in five years. You plan to make six annual payments of $3300, with the first payment made today, and the final payment will be made five years from now. If you earn 5.00 percent interest, compounded annually, how much money will you have in the account in five years? Your Answer: Answer units