1. A loan is offered with monthly payments and a 12.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
2. Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per year, will provide him with $4,400 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.
How much money does he need to contribute per month to reach his goal? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)