Never round intermediary steps (or keep at least 4 decimal places), SHOW ALL WORK, and LABEL your answers.

Problem #5: Calculating Effective Annual Rate Hint: EAR = [1 + (APR/m)]"- 1 First National Bank of Charlotte charges 11.6% APR, compounded monthly on its business loans. First United Bank of Rock Hill charges 11.8% APR, compounded semiannually. A. Calculate the EAR for each bank. First National Bank of Charlotte First United Bank of Rock Hill 8. As a potential borrower, which bank would you go to for a new commercial loan? Problem #6: Calculating Annuity APR You want to borrow $28,000 to buy your first new car using your own credit. The bank is telling you your payment will be $600 for a 72-month APR loan, Assuming monthly compounding, what is the rate that the bank is charging you? Hint: Find the monthly rate then multiply by 12 to find the APR Problem #7: Calculating Ammortization Schedule (2pts) Prepare an amortization schedule for a three-year $72,000 loan with 9% Interest per year. The loan has equal payments and repays part of the principal in each payment. Use 4 decimal places throughout calculations, but write answer rounded to just 2 decimal places. Beginning Total Interest Principal Ending Year Balance Payment Payment Payment Balance 1 2 3 Total Interest Paid =