1. Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.)
21% compounded monthly. [Note: This rate is a typical credit card interest rate, often stated as 1.8% per month.]
2. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.
Find the required payment for the sinking fund. (Round your answer to the nearest cent.)
Monthly deposits earning 5% to accumulate $4000 after 10 years.
3. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.
How much must you invest each month in a mutual fund yielding 13.5% compounded monthly to become a millionaire in 10 years? (Round your answer to the nearest cent.) $