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Use these assumptions. Inflation is 5%. The Rod Serling bank pays 4.5% interest on checking compounded monthly, and 6% interest on savings compounded annually. You

Use these assumptions. Inflation is 5%. The Rod Serling bank pays 4.5% interest on checking compounded monthly, and 6% interest on savings compounded annually. You are in the 22% marginal tax bracket. Use equations 5.2 through 5.5 on page 98 & 99.

A) What is the APY for checking accounts at the Rod Serling bank?

B) What is the RAPY for savings accounts at the Rod Serling bank?

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