Please answer both questions and show your work!! Please use the following facts to analyze this nest two questions: Ass

[answerhappygod]

Please answer both questions and show your work!!
Please use the following facts to analyze this nest two
questions:
Assume you just received a bill for services you and have the
following two payment options: Option 1: Pay the entire bill of
$600 now Or Option 2: Pay: $130 now And $130 for each of the next 4
months
1. What annual interest rate (APR) are you paying if you choose
Option 2? Assume monthly compounding. Round you answer to the
nearest two decimal points. Do not use $, commas or %. For example,
25.34% would be entered as 25.34.
2. What Effective Annual Rate are you paying if you choose
Option 2? Assume monthly compounding. Round you answer to the
nearest two decimal points. Do not use $, commas or %. For example,
25.34% would be entered as 25.34.