1. Suppose that a savings account pays 11 percent interest convertible monthly. What is the monthly compound interest rate?
2. Suppose that a money market fund pays a nominal rate of interest of 8.9 percent convertible monthly. What is the equivalent nominal rate convertible quarterly?
3. Suppose that you borrow 3100 dollars on April 23, 2003 at an effective rate of 6 percent. If you make no payments, how much will you owe on June 5, 2008? (Assume compound interest for whole years, and simple interest for fractional parts of a year.)