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Greatest effective annual interest rate

Question 1. How much will my annual payments be on a $15,000 loan at 12% interest, to be paid off in 4 years?

Question 2. How much will my monthly payments be on a $15,000 loan at 12% interest, to be paid off in 4 years?

Question 3. How long will it take me to save $13,816.45 if I make annual payments of $1,000 at 7%?

Question 4. Which of the following provides the greatest effective annual interest rate?

(a) 9% compounded annually?

(b) 8.5% compounded quarterly?

(c) 8% compounded monthly

(d) 7.5% compouned daily

Question 5. How much must I pay into my 6% savings account at the beginning of each month to have $25,000 in 4 years?

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