You have recently inherited a large sum of money, and have decided to invest your money in a high interest savings account. The various banks have offered you the following APRs. Which option pays the highest EAR? Annual compounding at an APR of 6.51%. Monthly compounding at an APR of 6.21%. Fortnightly compounding at an APR of 6.15%. Quarterly compounding at an APR of 6.37%.

How much do you need to deposit in the bank today to have $10,000 in your account in exactly 3 years. Your bank account earns 9%p.a. compounding monthly. (Assume no additional deposits or withdrawals between now and your three year investment horizon). $7,641.49 $7,656.67 $7,721.83 $7,874.02

You have just paid $5000 to receive $200 per year in perpetuity, what is the implied interest rate? 4% 5% 6% 3%