Question: Calculate the EAR for the following stated interest rates and determine which proposed rate offers the most attractive return. 12% compounded monthly 12.5% compounded quarterly

Calculate the EAR for the following stated interest rates and determine which proposed rate offers the most attractive return.

12% compounded monthly

12.5% compounded quarterly

13% compounded semiannually

13.25% compounded annually

You intend to retire 20yrs from today with $800,000 in savings. Assuming you earn 8% annual interest on your investments and intend to make annual payments into your retirement account starting next year.

What is the minimum payment you can make to realize your retirement goals?

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