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Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received

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Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $57,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.7 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 45 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.9 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) EAR First National First United % % As a potential borrower, which bank would you go to for a new loan? First United Bank First National Bank You are looking at a one-year loan of $19,000. The interest rate is quoted as 8.2 percent plus three points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 8.2 percent interest. d What rate would you actually be paying here? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ok Interest rate % ences

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