Part 1:

How much must we invest at the end of each month to build a balance of $500,000 over 12 years if we earn 7% per annum(compounded monthly)? (Round to nearest penny and enter, for example, as 123456.78)

Answer:

Part 2:

A credit card company charges you an interest rate of 1.9% monthly (i.e., 1.9%per monthon the card's outstanding balance). This rate is not a per annum rate (i.e., not an APR) but a rate per month. The effective annual rate is_______

. (Enter your answer as a percentage rounding to 100th of a percent, e.g., 12.34)

Answer: