Your bank offers a savings account that pays a stated (nominal) interest rate of 12 percent...

Your bank offers a savings account that pays a stated (nominal) interest rate of 12 percent per year, compounded quarterly.

Requirement 1:

If you deposit $8,000 today into this account and leave it invested for 6 years, how much will you have in the account at the end of Year 6? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Account Balance

$

Requirement 2:

What is the effective annual interest rate earned on money invested in this account? (Round your answer to 2 decimal places (e.g., 32.16).)

Effective Annual Rate

%

Requirement 3:

What is the highest effective annual rate attainable with a 12 percent nominal rate? (Round your answer to 2 decimal places (e.g., 32.16).)

Highest Effective Rate

%

Expert Solution

jeff jeffy answered 9 months ago

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