What is the future value of a 5-year ordinary annuity with annual payments of $500, evaluated at a 7 percent interest rate? What is it for the annuity due?

(20 Points)

$701.28 and $750.37

$2762.82 and $2900.96

$2,875.37 and $3,076.65

$4071.00 and $4274.55

2.You received two credit card offers in the mail. Upon evaluation of each offer, you find that Bank of America is offering an APR of 20% compounded semiannually and Wells Fargo is offering an APR of 20.5% compounded annually. Which credit card offers a better rate?

(20 Points)

Bank of America since it has lower APR

Wells Fargo since it has higher APR

Bank of America since it has lower EAR

Wells Fargo since it has lower EAR

3.A $15,000 car loan has payments of $250 per month for six years. What is the interest rate? Assume monthly compounding and give the answer in terms of an annual rate.

(15 Points)

0.52%

3.8%

6.20%

9.62%