Shashin has 4P dollars that he wants to invest in a savings account earning an interest rate of r at the end of every two weeks. Nimish suggests an alternative: that Shashin instead open four different savings accounts with the bank (all earning the same rate, r at the end of every two weeks), and invest P dollars into each of them. This way Shashin can take advantage of the great interest rate even more! Help Shashin determine which strategy to adopt.

Hannah is exploring savings options from several different banks and has settled on one of the financial products offered by Bank A. Calculate the effective annual interest rate for Hannah given that the nominal annual interest rate is 3% p.a. Note that the nominal interest rate is compounded monthly. Additionally, Bank B is offering the same product with an effective interest rate of 5.5% p.a. Given this, would Hannah be better off saving with Bank A or Bank B? Justify your answer.

Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.88

Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .