Question 1
Solve the problem.
A = PntP = A = PertY = n - 1
Brad wants to have
available to buy a car in 5 years. How much must he deposit now at
compounded monthly to reach that goal?
Question 2
Solve the problem. Round to the nearest tenth of a percent.
A = PntP = A = PertY = n - 1
A passbook savings account has a rate of 6.3%. Find the effective annual yield if the interest is compounded quarterly.
◦ 6.7%
◦ 6.5%
◦ 6.4%
◦ 6.6%