Problem
1. A credit card company announces that its interest rate is 1.5% per month. What is the corresponding effective annual interest rate?
2. Your local bank has a promotional saving program that pays an interest rate of 6% per year compounded monthly. If you deposit $1,000 on January 1 in this bank, how much will you have in your account at the end of year 1 and year 2?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.