Prompt for questions $4-6$:

You're setting up a savings account at a new bank. Before you start depositing money, you want to be able to calculate the effective interest rate you'll be earning as we have done in class. You plan to make monthly withdrawals and deposits, the nominal interest rate is stated in per year terms, but interest is compounded quarterly.

When determining the effective interest rate, what time unit should we use in this case?

Group of answer choices

Quarters

Months

Years

Days

Flag question: Question $5$

Question $510$ pts

Prompt for questions $4-6$:

You're setting up a savings account at a new bank. Before you start depositing money, you want to be able to calculate the effective interest rate you'll be earning as we have done in class. You plan to make monthly withdrawals and deposits, the nominal interest rate is stated in per year terms, but interest is compounded quarterly.

Suppose the bank quotes you a nominal interest rate per year of $8\mathrm{.}68$ percent. What is the effective interest rate per the appropriate time unit $($i$.$e$.,$ per the correct answer to Question $4)?$

Use two decimal places. An interest rate of $2\mathrm{.}25\%$ should be entered as $2\mathrm{.}25.$

Flag question: Question $6$

Question $620$ pts

Prompt for questions $4-6$:

You're setting up a savings account at a new bank. Before you start depositing money, you want to be able to calculate the effective interest rate you'll be earning. You plan to make monthly withdrawals and deposits, but interest is compounded quarterly.

To start your account today, you deposit $$7000.$ Starting next month, you plan on depositing $$100$ every month for the next year. You also plan to withdraw $$1000$ every quarter for the next year, starting next quarter $(4$ withdrawals$).$

If the nominal interest rate quoted to you is $6$ percent per year $($POTENTIALLY DIFFERENT FROM Question $5),$ how much money will be in your account at the end of the year?

$($note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas$)$