Finding nominal rate of return Suppose the effective annual interest rate on some investment is $8\mathrm{.}87\%.$

a$.$ What is the stated rate per month?

b$.$ Suppose you decide to kick your Starbucks habit to save money. Currently you spend $$125\mathrm{.}00$ per month $($about $$4$ per day$)$ on Starbucks coffee. Without considering the time value of money and assuming Starbucks prices remain steady, how much will you spend at Starbucks over the next $40$ years assuming no change in your monthly spending?

c$.$ Now suppose you invest the $$125\mathrm{.}00$ monthly in an account that earns an effective annual return of $8\mathrm{.}87\%.$ How much money will you accumulate over $40$ years using the funds that you previously spent at Starbucks? Note: assume your first monthly deposit occurs one month from now.