Problem 1: If you put $1200 in the bank now, how much will you have after six years? What if you earn 12% compounded interest per year?
Problem 2: If you buy a painting for $300 and are able to sell it after 4 years for $500, what was your effective annual interest rate on your investment?
Problem 3: What is the effective interest rate of an advertised interest rate of 14% nominal rate compounded monthly?