(a) Assume that your savings account offers you an APR of 6.0% with quarterly compounding. What is the present value of $2,000 to be received 21 months from today?
(b) Lenny Loanshark charges 1 percent per week on his loans. Assuming there are exactly 52 weeks in a year, what APR must he report to consumers? What is the effective annual interest rate on his loans?
(c) You have been given the once-in-a-lifetime opportunity to invest $5000 in a certificate of deposit paying an APR of 36.0% with monthly compounding. Exactly how many months will it take for your $5,000 to grow to $20,000?