1. Suppose you are faced with two investment opportunities: W and Z. W provides an interest rate of 12.5 % per year, compounded monthly. Z provides an annual interest rate of 12.5 % compounded annually. Which investment provides more interest earned?
2. You have a credit card balance of $2,406.93. You quit using the card and make monthly payments of $50. Assuming your interest rate is 18%, how long will it take you to pay off the balance?