(a) If a savings bank account pays 1% interest every month, what are the nominal and effective interest rates per year? (b) How much must you invest now at 6% interest to accumulate $300,000 in 20 years?

Question 1 (12 pts). (a) If a savings bank account pays 1% interest every month, what are the nominal and effective interest rates per year? (b) How much must you invest now at 6% interest to accumulate $300,000 in 20 years