Your new El Supremo credit card arrangement indicates that you will owe interest on unpaid balances at a nominal (stated) rate of 1.2% per month. If the interest rate is compounded monthly, what is the approximate effective annual rate of interest? O a. 14.02% O b. 15.39% c. 14.40% O d. 12.00% Debbie won the $60 million lottery. She is to receive $1 million a year for the next 50 years beginning one year from now, plus an additional lump sum payment of $10 million after 50 years. The discount rate is 10 percent. How much cash would she need to be offered today to tempt her to take a lump-sum cash offer instead, all things equal? Answer: Kim started a paper route on January 1, 2016. Every three months, she deposited $300 in her new bank account, which earned 4 percent annually but was compounded quarterly. On December 31, 2019, she placed the entire balance in her bank account in an investment that earned 5 percent annually. How much will she have on December 31, 2022? Answer: Jada is borrowing $40,000 from you today. She agrees to pay you back in annual installments beginning a year from now over eight years, with interest at 3%. What would her annual payment amount be, including both interest and principal? Answer: