1. A couple is interested in making sure their son has some money to go by after he finishes college. They are prepared to invest $10,000 in a savings account, for which the bank is offering them a 12% annual interest rate, compounded monthly. How much money will they have after 2 years?
2. What is the effective interest rate of a simple discount note for $22,000, at an ordinary bank discount rate of 8.36%, for 90 days? Round to the nearest tenth of a percent.