Instructions: Answer each question, and when required explain your answer. 
Your explanation must be clear and complete. You may refer to your book, 
your notes and your homework papers.

[1] Which is the best deal over a 3-year period: investing at 7.2% 
compounded annually, investing at 7% compounded monthly or investing at 
6.8% compounded daily? Show how you determine the answer.

[2] Problem 21ab on p. 814: How much money would have to be invested in an 
account at 4.25% annual interest to achieve a balance of $50,000 in 20 
years in each of the following cases?

(a) The account pays simple interest?

(b) The account compounds interest semi-annually?

[3] Problem 24 p. 831.

(a) Use the monthly payment formula to determine the monthly payment for a 
60-month amortized loan of $25,495 at 4.5% interest.

(b) Use an amortization table to find the monthly payment for the loan from 
part (a), and compare the result with the monthly payment found in part (a).

[4] Explain how to select a simple random sample of 7 elements from the 
whole numbers running from 1 to 100, using the table on page 570. What 
sample do you get? Explain in enough detail that I can verify that your 
sample is the one you should have gotten.

[5] Explain how to select a 40% independent sample from the whole numbers 
running from 1 to 10, using the table on page 570. What sample do you get? 
Explain in enough detail that I can verify that your sample is the one you 
should have gotten.

[6] Do Problem 37 on page 592.