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Bank ABC is offering you an annual interest rate at 4.95% compounded monthly. You want to buy a new car is 5 years. Find the

Bank ABC is offering you an annual interest rate at 4.95% compounded monthly.

You want to buy a new car is 5 years.

Find the effective interest rate (EIR)

You think that if you deposit $550 monthly you will save enough over 5 years to buy the car.

Calculate the effective interest rate, the equivalent nominal interest rate with monthly compounding, and then future value of the monthly deposits

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