14. Calculating EAR. First National Bank charges 10.1 percent compounded monthly on its business loans. First United Bank charges 10.3 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? 15. Calculating APR. Vandermark Credit Corp. wants to earn an effective annual return on its consumer loans of 14.2 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. 16. Calculating Future Values. What is the future value of $1.345 in 16 years assuming an interest rate of 8.4 percent compounded semiannually? 17. Calculating Future Values. Bucher Credit Bank is offering 4.7 percent compounded daily on its savings accounts. If you deposit $3,650 today, how much will you have in the account in five years? In 10 years? In 20 years? 18. Calculating Present Values. An investment will pay you $65,000 in nine years. If the appropriate discount rate is 5.5 percent compounded daily, what is the present value? 19. EAR versus APR. Ricky Ripov's Pawn Shop charges an interest rate of 13.7 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. What rate should the shop report? What is the effective annual rate? 20. Calculating Loan Payments. You want to buy a new sports coupe for $73,400, and the finance office at the dealership has quoted you a loan with an APR of 5.1 percent for 60 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? 21. Calculating Number of Periods. One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of S400 per month. You will charge 1.4 percent per month interest on the overdue balance. If the current balance is $14.480, how long will it take for the account to be paid off? 22. Calculating EAR. Friendly's Quick Loans, Inc., offers you "Five for four, or I knock on your door." This means you get $4 today and repay $5 when you get your paycheck in one week (or else). What's the effective annual return Friendly's earns on this lending business? If you were brave enough to ask, what APR would Friendly's say you were paying? 23. Valuing Perpetuities. Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,300 monthly. The contract currently sells for $425,000. What is the monthly return on this investment vehicle? What is the APR? The effective annual return? 24. Calculating Annuity Future Values. You are to make monthly deposits of $500 into a retirement account that pays an APR of 9.8 percent compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? 25. Calculating Annuity Future Values. In the previous problem, suppose you make $6,000 annual deposits into the same retirement account. How large will your account balance be in 35 years