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Finding nominal rate of return Suppose the effective annual intecest rate on somo inwestment is 8.45% a. What is the stated rate per month? b.
Finding nominal rate of return Suppose the effective annual intecest rate on somo inwestment is 8.45% a. What is the stated rate per month? b. Suppose you decide to kick your Starbucks habit ta save money. Currently you spend $125.00 per month (about $4 per day) on Siarbucks collfee Wahout considering the time value of money and assuming Starbucks prices remain stoady. how much will you spend at Slarbucks over the next 45 years assuming no change in your monithly spending? c. Now suppose you invest the $125.00 monthly in an account that cams an eflective annual resurn of 8.45%. How much money will you accumulate over 45 years uting the funds that you previously spent at Starbucks? Nole, assume your first monthly depovit occurs one month from now. a. The stated rate per month is 5. (Fiound to five decimal places.)
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