Question #2 Max worksheet/handout! When choosing between two goods, and given total utility figures, be able to calculate marginal utility for the two goods. Furthermore, determine marginal utility per dollar (MU/$) for each good. Remember, compare MU/$ of each good to determine which good you will choose next. Considering a budget or income, you should keep choosing the good that has the highest MU/$ until your budget or income is spent. This resulting combination of goods maximizes your total utility! Remember Max!

1. what is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually? $8.00 $4.08 $8.16 $4.00 2. what is the amount of compound interest earned after three years on a $100 deposit paying 8 percent interest annually? $24.00 $8.00 $16.64 $25.97 3. a business just took out a loan for $100,000 at 10% interest. if the business pays the loan off in three months, how much did the business pay in interest? $2,500.00 $10.00 $250.00 $10,000.00 4. what is the annual percentage yield (apy) for a deposit paying 5 percent interest with monthly compounding? 5.00% 5.12% 79.59% 0.42%