City Bank wants to appear competitive based on quoted loan rates and thus must offer a 7.75 percent annual percentage rate

City Bank wants to appear competitive based on quoted loan rates and thus must offer a 7.75 percent annual percentage rate on its loans. What is the maximum rate the bank can actually earn based on the quoted rate?    A.  8.06 percent B.  8.14 percent C.  8.21 percent D.  8.26 percent E.  8.58 percent

99.

You are going to loan a friend $550 for one year at a 6 percent rate of interest, compounded annually. How much additional interest could you have earned if you had compounded the rate continuously rather than annually?    A.  $0.84 B.  $1.01 C.  $1.10 D.  $1.23 E.  $1.28   Additional interest = $550 × (0.0618365 - 0.06) = $1.01

100.	You are borrowing money today at 8.48 percent, compounded annually. You will repay the principal plus all the interest in one lump sum of $12,800 two years from today. How much are you borrowing?    A.  $9,900.00 B.  $10,211.16 C.  $10,877.04 D.  $11,401.16 E.  $11,250.00