1. A credit card company offers me a card with 20% APR, compounded daily. I make purchases of $3,000 on the card, and allow interest to accrue on those purchases for a year. Assuming each year has 365 days, the amount I will have to pay back is:
(a) $3,315 (b) $3,600 (c) $3,664 (d) $3,901
2. What industry is most identified with interest rate risk?
a. savings and loans
b. commerical banks
c. credit unions
d. insurance companies
e. mutual funds