Question 1. Would you rather have a savings account that pays 5% compounded semiannually or one that pays 5 percent compounded daily? Explain your answer.

Question 2. Stillwater Hospital is borrowing $1,000,000 for its medical office building. The annual interest rate is 5%. What will be the monthly payments on the loan if the length of the loan is four years and payments occur at the end of each year? Show your work.

Question 3. Lakeside Cancer Research Institute just received a $3 million gift to cover the salary for a permanent research scientist in perpetuity to study Hodgkin's disease. What would be the required rate of return on the investment if the position paid an annual salary of $125,000? Show your work.