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. 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 5 If Miguel were to open a CD with this large, national bank, what would be his account balance after one year? Use the following compound interest calculator: Savings Calculator . Enter the estimate that the calculator gives you. Do not include commas or the \$ symbol; only enter a numerical value