Question 2:

Answer the following:

a) Two debts, the first of $1500 due six months ago and the second of $1800 borrowed one year ago for a term of four years at8.8% compounded annually, are to be replaced by a single payment one year from now. Determine the size of the replacement payment if interest is 9.7% compounded quarterly and the focal date is one year from now.

Yin Li deposited $200 into a savings account that compounded interest monthly . What nominal annual rate compounded monthly was earned on the investment if the balance was $466.90 in eight years?

(Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)

c)

Find the nominal annual rate of interest for the following investment.

Principal	Future Value	Time Due	Frequency of Conversion
$1004.00	$2166.36	7 years	monthly

The nominal annual rate of interest is ___compounded monthly .

(Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)