agree to make 24 deposits of $500 at the beginning of each month into a bank account.At the end of the 24th month, you will have $13,000 in your account.If the bank compounds interest monthly, what nominal annual interest rate will you be earning?
A)7.62%
B)8.00%
C)8.40%
D)8.82%
E)9.26%

Question

Quizplus · Accepted Answer

The nominal annual interest rate can be calculated using the future value of an annuity formula. Given the future value, monthly deposit, and number of deposits, the interest rate that satisfies the equation is approximately 7.62%.

Agree to Make 24 Deposits of $500 at the Beginning