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Asked Oct 20, 2019
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Suppose that you deposit $15 at the end of each month into a savings account that pays 2% interest compounded monthly.  After a year, ------ is in the account.

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Step 1

Following informations are given in the question:

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Monthly deposit (C) $15 Interest rate 2% per annum Compounding Monthly compounded

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Step 2

Effective interest rate per month (r) is as follows:...

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Amnual interest rate Effective monthly interest rate (r) 12 2% 12 0.167% =

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