Two Select the Correct Answer (show all your work) 1. At what rate must $400 be compounded annually for it to grow to $855 in 10 years? a) 6 percent b) 5 percent c) 7 percent d) 8 percent 2. You wish to borrow $4,000 to be repaid in 12 monthly installments of $364.12. The annual interest rate is: a) 1 percent b) 6 percent c) 17 percent d) 19 percent. 3. A commercial bank will loan you $12,500 for three years to buy a used car. The loan must be repaid in 36 equal monthly payments. The annual interest rate on the loan is 6 percent of the unpaid balance. How large are the monthly payments? a) $380.27 b) $345.53 c) $372.45 d) $353.05 4. If you put $1850 in a savings account with a 4% nominal rate of interest compounded quarterly, what will the investment be worth in 21 months (round to the nearest dollar)? a) $1867.59 b) $1956.12 c) $2045.23 d) $2,176.45 5. Which of the following provides the greatest annual yield? a) 14.5% compounded quarterly b) 14.35 % compounded monthly c) 14% compounded daily d) cannot be determined 6. If you want to have