You have $5,600 that you want to use to open a savings account. There are five banks located in your area

You are considering two loans. The terms of the two loans are equivalent with the exception of the interest rates. Loan A offers a rate of 7.75 percent, compounded daily. Loan B offers a rate of 8 percent, compounded semi-annually. Which loan should you select and why?    A.  A; the effective annual rate is 8.06 percent. B.  A; the annual percentage rate is 7.75 percent. C.  B; the annual percentage rate is 7.68 percent. D.  B; the effective annual rate is 8.16 percent. E.  The loans are equivalent offers so you can select either one.

95.

You have $5,600 that you want to use to open a savings account. There are five banks located in your area. The rates paid by banks A through E, respectively, are given below. Which bank should you select if your goal is to maximize your interest income?    A.  4.61 percent, compounded annually B.  4.15 percent, compounded monthly C.  4.57 percent, compounded semi-annually D.  4.10 percent, compounded continuously E.  4.25 percent, compounded quarterly EARA = 4.61 percent   Bank C offers the highest effective annual rate at 4.622 percent.

96.	What is the effective annual rate of 14.9 percent compounded continuously?    A.  15.59 percent B.  15.62 percent C.  15.69 percent D.  15.84 percent E.  16.07 percent

97.	What is the effective annual rate of 5.25 percent compounded continuously?    A.  5.27 percent B.  5.39 percent C.  5.43 percent D.  5.46 percent E.  5.49 percent