What is the monthly interest rate on the mortgage

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1. If you deposit $600 in a savings account that earns a nominal annual interest rate of 8%, how many years will it take to have at least $2,000?

2. If you deposit $600 in a savings account that earns a nominal annual interest rate of 8% that is compounded quarterly, how many years will it take to have at least $900?

3. You deposit $300 into an account that pays interest monthly. After four years, the balance is $613. What is the nominal annual interest rate paid on this account? What is the effective interest rate on this account?

4. The effective interest rate on a mortgage with monthly payments is 4.6%. What is the monthly interest rate on the mortgage? What is the nominal interest rate?

5. How much money should you invest in a fund that will pay 8% compounded monthly, if you want to have $40,000 in the fund at the end of 20 years?

Reference no: EM13832854

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