Suppose you just deposited S50 today into Bank of America savings account that has an APR of 6%. Based on simple interest annually, how much will you have in the account after 35 years assuming no withdraw? What would be your answer if the same interest is annual compounding instead? Based on the information in question 5 and same 690 APR, what is your answer if the bank pays simple interest monthly? What about monthly compounding? You are looking at two savings accounts offered by different banks. One pays 5.25% APR with daily compounding. The other pays 5.3% APR with semiannual compounding. Which account should you use to get more from your deposit? The local bank will charge you 10% APR for your mortgage loan. Suppose you are making monthly payment, what is the Effective Annual Rate (EAR) you are paying the bank on that mortgage? Holding Period Return: r_Holding = P_sell - P_boy + (Dividend or Coupon)/P_boy Annual Percentage Rate (APR) = Period Interest Rate times #Hof Periods in a year