Wedding planner-what is the effective annual rate

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Reference no: EM131021585

The Wedding Planner: Adrian Brady would like to save at least $20,000 and have it ready two years from now to pay for his anticipated wedding party to which he plans to invite all his and his fiancé’s relatives and friends. Assuming that he can invest the money at an annual rate of 6% per year (compounded monthly).

How much does he need to save in bank each month (starting one month from now with the last deposit made two years from now) in order to have the $20,000 two years from now?

What is the effective annual rate that Adrian will earn on his deposits?

Reference no: EM131021585

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