Suppose the interest rate is 8 apr with monthly compounding


1. Suppose the interest rate is 8% APR with monthly compounding. What is the present value of an annuity that pays $100 every six months for five years?

2. You have found three investment choices for a one-year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.)

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Financial Management: Suppose the interest rate is 8 apr with monthly compounding
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