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Hello, I would appreciate help with this question, the answer is supposed to be 5229.70 for part a and 4.59% for part b. 2. Your
Hello, I would appreciate help with this question, the answer is supposed to be 5229.70 for part a and 4.59% for part b.
2. Your Money Market account has a variable interest rate that changes over time. The given rate is always an annual nominal rate which is convertible monthly. The table below gives the rate over the last four quarters. Period Interest Rate 3.6% Quarter Ending 03/31/2009 Quarter Ending 06/30/2009 4.2% 4.8% Quarter Ending 09/30/2009 Quarter Ending 12/31/2009 5.4% a. Suppose that you deposit 5000 into the account on 01/01/2009. What is the future value of the deposit on 01/01/2010? Round to two places. Answer: b. What is the annual yield for this Money Market account? (i.e. What annual effective rate is equivalent to the overall growth over the four quarters?) Give your answer as a percentage rounded to two placesStep by Step Solution
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