Hi! Please answer all questions and I will give a good like! I will only give like if you answer all questions. Thank you. Please round to two decimal places.

Question 1

Part A Future value: annuity versus annuity due

What's the future value of a 6%, 5-year ordinary annuity that pays $300 each year? Round your answer to the nearest cent. $__________

If this was an annuity due, what would its future value be? Round your answer to the nearest cent. $__________

Part B Present Value

What is the present value of a security that will pay $39,000 in 20 years if securities of equal risk pay 12% annually? Round your answer to the nearest cent. $_____________

Question 2 Effective versus nominal interest rates.

Part A Bank A pays 7% interest compounded annually on deposits, while Bank B pays 6.5% compounded daily. Based on the EAR (or EFF%), which bank should you use?

a) You would choose Bank A because its EAR is higher.

b) You would choose Bank B because its EAR is higher.

c) You would choose Bank A because its nominal interest rate is higher.

d) You would choose Bank B because its nominal interest rate is higher.

e) You are indifferent between the banks and your decision will be based upon which one offers you a gift for opening an account.

Choose Correct Letter ___________

Part B Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.

A) If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank A might be preferable.

B) If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you have no intentions of making a withdrawal during the year, then Bank B might be preferable.

C) If funds must be left on deposit until the end of the compounding period (1 day for Bank A and 1 year for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank B might be preferable.

D) If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank B might be preferable.

E) If funds must be left on deposit until the end of the compounding period (1 day for Bank A and 1 year for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank A might be preferable.

Choose Correct Letter ___________

Question 3 Finding the required interest rate.

Your parents will retire in 20 years. They currently have $300,000, and they think they will need $750,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. _____________%

Question 4 Loan amortization and EAR

You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 5% with interest paid monthly. What will be the monthly loan payment? Round your answer to the nearest cent. $)___________

What will be the loan's EAR? Round your answer to two decimal places. _________%