Question: 1. How much interest is earned on £50,000 invested for three months at a nominal annual interest rate of 5%? If money can be reinvested each quarter at the same rate, what is the AER?
2. If a credit card company charges 1.48% a month on any outstanding balance, what APR is it charging?
3. A building society pays an AER of 5.5% on an investment account, calculated on a daily basis. What daily rate of interest will it pay?