EXERCISE SET 4: Fill in the APY values in the table below. Answer with a percent rounded to three decimals places. A recent look at mortgage rates for S&T Bank shows the following: Loan APR APY APY Quarterly Monthly APY con- tinuously 30 year fixed mort- 4.192% gage 20 year fixed mort- 4.025% gage 10 year fixed mort- 3.902% gage EXERCISE SET 5: Answer the following questions. 1. Suppose that an investor has to choose between two investment accounts: Account 1 with a stated annual interest rate of 10% compounded daily (365 times a year) and Account 2 with a stated annual interest rate of 10.13% compounded semiannually (twice a year). Determine which is the better choice by comparing effective interest rates rounded to three decimals? Account 1 APY: % Account 2 APY: % Better Choice: (Account 1 or Account 2?) 2. You invest $2,000 in an account at WestAircomm Federal Credit Union that pays 8% interest compounded continuously. You plan to hold the account exactly 3 years. At the same time, you deposit money in an account at Key Bank that earns 9% compounded semiannually. If the accounts are to have the same amount at the end of the 3 years, how much of an initial deposit do you need to make at Key Bank? Amount In 3 Years (round to nearest cent): $ Deposit in Key Bank: $ 3. Taking into consideration all forms of compounding and assuming you carn 100% interest, what is the maximum amount of money you can make in one year on an investment of $1.00? On the first blank type the name of the general model to use, type the value of P and r followed by the specific model for this problem on the next 3 blanks, and finally fill in the blanks for the input value, output value, and the maximum dollar value at the end of the year to conclude this problem. Type of Model: 4. Suppose you invest money under continuous compounding with an APY (annual yield) of of 4.238%. (a) Type an equation that can be used to solve for the annual rate (APR), r. You need not solve the equation. Equation: (b) Fill in the APY values (assuming continuous compounding) in the table below and determine an appropriate range for r from part (a) APY (continuous comp.) APR 3.99% 4% 4.08% 4.12% 4.19% 4.21% 4.33% r is between % and %