Question: bank a is offering 5.8% compounded quarterly while bank b is offering 5.9% compounded semi-annually. which of the following statements is true? a. A is

bank a is offering 5.8% compounded quarterly while bank b is offering 5.9% compounded semi-annually. which of the following statements is true?

a. A is higher with an EAR of 5.93%

b. A is higher with an EAR of 6.00%

c. B is higher with an EAR of 5.99%

d. B is higher with an EAR of 6.05%

You are pre-arranging a mortgage from a bank. The mortgage amount is $125,000 and the bank quoted you a 5 year term with an interest rate of 3.2%. You will amortize the repayment schedule over 35 years. The monthly payment will be closet to:

a. $1,569.14

b. $472.96

c.$493.63

d.481.06

Wilma's husband, John, left her with $750,000 worth of insurance money. She is only 45, enjoys her job as a nurse and does not want to retire. What amount, approximately, will her $750,000 be when she retires at age 60 if the credit union pays her 3% per annum, compounded semi annually?

a. 1,112,500

b. 1,103,552

c. 1,168,476

d. 1,172,310

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