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11. Seabee makes quarterly (end of period) payments of $30,000 into a pension fund earning 12 percent compounded quarterly for 10 years. How much interest
11. Seabee makes quarterly (end of period) payments of $30,000 into a pension fund earning 12 percent compounded quarterly for 10 years. How much interest will have been earned in 10 years?
a. $2,262,030
b. $2,105,880
c. $905,880
d. $1,062,030
12. You have just borrowed $30,000 to buy a new car. The loan agreement calls for 48 monthly payments of $704.55 each to begin one month from today. If the interest is compounded monthly, then what is the effective annual rate (EAR) on this loan?
a. 6.17%
b. 7.06%
c. 6.00%
d. 6.67%
e. 7.54%
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