You invested $8,000 in two different banks. Bank 1 pays 4% simple annual interest whereas Bank 2 pays 4% compounded annually. If you plan to invest the money for 22 years which bank would you choose and how much more money would you earn? (Round your answer to the nearest penny.) Select one: a. Bank 1; 4433.11 b. Bank 2: 4263.19 c. Bank 1 ; 3806.34 d. Bank 2 ; 3325.36 e. Bank 2 ; 3919.35 You can invest funds at 4.9% (APR). You are considering buying an annuity and are comparing two alternatives. Both of these are 15 years in length, with the same number of monthly payments (to you) of $5765. The first instrument pays at the "end" of the month while the second pays at the "beginning" of the month. You believe that the second alternative must be worth more as the money comes to you faster, but how much more is it worth to you? Select one: a. 2596 b. 2702 c. 2997 d. 3397 e. 4420 What is the main difference between any type of Annuity and any type of Perpetuity? Select one: a. Annuities are the preferred instrument of extra-terrestrial life on earth b. Annuities can only grow at an annual rate c. Annuities have level cash flows that are paid forever. d. The cash flows of an annuity can only cur in the middle of the period e. Annuities have level cash flows that are paid for a set length of time