Solve the following word problem by using Table 11-1.

The First National Bank is offering a 6-year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 6-year CD at 5% interest compounded annually. Round percentage answers to two decimal places. Round dollars to the nearest cent. Do not round intermediate calculations.

Click here forTable 11-1

a.If you were interested in investing $7,000 in one of these CDs, calculate the compound amount of each offer.

First National: $

Second National: $

b.What is the annual percentage yield of each CD?

Do not enter the percent symbol in your answer.

First National:%

Second National:%

c.If Third National Bank has a 6-year CD at 6.5% interest compounded monthly, use the compound interest formula to calculate the compound amount of this offer.

$