Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 years?

2000((1+0.075)^40-1)/0.075

=2000(1.075)^40-1/0.075

=2000(18.044239-1)/0.075

=2000(17.044239)/0.075

=34088.478/0.075

=$454,513.04

11. Calculate the following:

a. What is the APR if the monthly rate is 0.8%?

b. What is the APR if the semiannual rate is 0.6%?

c. What is the monthly rate if the APR is 17% with monthly compounding?