Please please show your work. I want to be able to follow it and learn. Thanks!!

Question 1

Find the EAR in each of the following cases. HINT: Recall that the EAR and APR for the same rate result in the same amount of interest. So even though they are quoted differently, over the same time period they result in the same amount of interest. To solve for the EAR, then, we set the future value of the APR and EAR equal to one another after one year (principal and interest): (1 + EAR) = [1 + (APR/m)]^m Since you know the APR, solve for the EAR (the interest rate that, when compounded annually, gives you the same interest as the quoted APR).

Required:
(a)	8% annual interest, compounded quarterly

(b)	11% annual interest, compounded monthly

(c)	15% annual interest, compounded daily

(d)	15% annual interest, with infinite (continuous) compounding. NOTE: here you use the natural number e, as in the equation (1+EAR)t = ert

Question 2

Suppose you are going to receive $18,000 per year for 9 years. The appropriate interest rate is 10 percent per year.

Requirement 1:
(a)	What is the present value of the payments if they are in the form of an ordinary annuity (cash flow starts at the end of the first compounding period)?

(b)	What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)?

Requirement 2:
(a)	Suppose you plan to invest the payments for 9 years, what is the future value if the payments are an ordinary annuity?

(b)	Suppose you plan to invest the payments for 9 years, what is the future value if the payments are an annuity due?