The recorded Week 7 Quiz 3 - Lumo Sum or Instaliments provides a good overview on calculating this problem. Use the "A Number of Useful Financlal. Spreadsheets" to find a sample template you can use to work this problem. I showed you how to do this problem as either and Ordinary Annuity or an Annuity Due. The problem you will answer has the following fact pattern: Your insurance premium for your autos are due and you have two options: Option 1 - Pay the full amount of $1,200 now. Option 2 - Pay $205 now and 5 monthly payments of $205 with the first payment starting in a month. What is the APR you are actually paying if you choose the installment Option 2? Use monthly compounding and carry your answer two decimal points. (76.25\% would be entered 76.25) QUESTION 2 What would the Effective Annual Rate be if you pursued the installment option? Use monthly compounding and carry your answer two decimal points. (76.25\% would be entered 76.25 )