Assuming nothing is paid back during the year, what is the size of the loan at the end of $1$ year, if $12 \%$ interest is compounded annually (meaning calculated only once at the end of the year)? Value $= \$$. Now consider the $12 \%$ interest split over $12$ months so each month you only get a small piece of the $12 \%\text{.}$ In fact, the loan is charged only $\frac{12 \%}{12}=1 \%$ each month. What growth factor is associated with a $1 \%$ growth? $b=$ What is the value of the $\$ 2700$ loan after $12$ monthly charges of $1 \%\text{?}$ Value $= \$$ (round to the nearest cent) The value of the loan after one year depends on how the bank compounds the $12 \%$ interest throughout the year. How much more money does the bank make if they compound the $12 \%$ interest monthly instead of annually? The bank makes $\$$ more. (round to the nearest cent).