Which of the following alternatives provides the most amount of money at the end of five years: Alternative A: receive $10,000 at the end of five years Alternative B: receive $9,000 at the end of three years and deposit the money into a bank account that pays 10% interest compounded annually. Alternative C: receive $7,000 today, and deposit it into a savings account with an interest rate of 8% compounded annually.

You are considering investing $2,500 at an interest rate of 7.7% compounded annually for seven years or investing the $2,500 at 8% per year simple interest for seven years. Which option is better?

If you purchase a $25,000 car, which is to be paid for in 60 monthly installments of $489.15, what effective annual interest are you paying for this financing arrangement?

Suppose that on September 30, 2021, a person opened an investment account with an initial deposit of $20,000.  The account guarantees to pay interest at a nominal annual rate of 6%, compounded monthly. The person plans to deposit $3,000 into the account at the end of each and every month starting on October 31, 2021 and ending on March 31, 2024 (a total of 30 additional deposits). (a) How much money will be in the account after the 30th additional deposit is made?  (b) What is the total amount of interest that will be earned over the 30-month planning horizon?  (c)  What is the effective annual interest rate that will be earned?  Express your answer to the nearest tenth of a percent, i.e., in the form xx.x%.