Miguel wants to set up a savings account in order to start saving for a down payment on a car. He has $200 to start his savings account and thereafter plans to save $100 every month. Help Miguel analyze different savings options to determine which savings account is accessible and will earn the most interest. For the following questions, assume that average annual inflation is 2%. To calculate real interest rates adjusted for inflation, use the following simplified equation: Real Interest = Stated (Nominal) Interest - Inflation Rate Miguel first looks at a standard savings account available from a local bank where he has a checking account. It offers an APY of 0.05% and it compounds monthly. Question 1 0.5/0.5 pts If Miguel were to open a savings account with his current local bank, what would be his account balance after one year? Use the following compound interest calculator: Savings Calculator e. Enter the estimate that the calculator gives you. Do not include commas or the $ symbol; only enter a numerical value. 1,400.37 Question 2 0/0.5 pts What real interest rate can Miguel expect for the standard savings account from his local bank? Do not include the % symbol. 0.33 Next, Miguel looks a high-interest online savings account. It has a an APY of 2.45% and it compounds monthly. Question 4 0/0.5 pts What real interest rate can Miguel expect for the high interest bearing online savings account? Do not include the % symbol. 0.1 Next, Miguel researches a certificate of deposit (CD) from a large, national bank. It has a an APY of 3.10%, has a term of 60 months, and compounds daily. Question 6 0/0.5 pts What real interest rate can Miguel expect for this CD? Do not include the % symbol. 0.1 Question 9 0/1 pts Based on your selection of savings product in question 7, if Miguel still has an initial deposit of $200 and wants to save a total of $3,500 in exactly two years, how much should he save each month? Do not include commas or the $ symbol; only enter a numerical value. 17.5 Miguel wants to set up a savings account in order to start saving for a down payment on a car. He has $200 to start his savings account and thereafter plans to save $100 every month. Help Miguel analyze different savings options to determine which savings account is accessible and will earn the most interest. For the following questions, assume that average annual inflation is 2%. To calculate real interest rates adjusted for inflation, use the following simplified equation: Real Interest = Stated (Nominal) Interest - Inflation Rate Miguel first looks at a standard savings account available from a local bank where he has a checking account. It offers an APY of 0.05% and it compounds monthly. Question 1 0.5/0.5 pts If Miguel were to open a savings account with his current local bank, what would be his account balance after one year? Use the following compound interest calculator: Savings Calculator e. Enter the estimate that the calculator gives you. Do not include commas or the $ symbol; only enter a numerical value. 1,400.37 Question 2 0/0.5 pts What real interest rate can Miguel expect for the standard savings account from his local bank? Do not include the % symbol. 0.33 Next, Miguel looks a high-interest online savings account. It has a an APY of 2.45% and it compounds monthly. Question 4 0/0.5 pts What real interest rate can Miguel expect for the high interest bearing online savings account? Do not include the % symbol. 0.1 Next, Miguel researches a certificate of deposit (CD) from a large, national bank. It has a an APY of 3.10%, has a term of 60 months, and compounds daily. Question 6 0/0.5 pts What real interest rate can Miguel expect for this CD? Do not include the % symbol. 0.1 Question 9 0/1 pts Based on your selection of savings product in question 7, if Miguel still has an initial deposit of $200 and wants to save a total of $3,500 in exactly two years, how much should he save each month? Do not include commas or the $ symbol; only enter a numerical value. 17.5