Mustafa is saving to buy a house His goal is $750000 The interest rate is 6 compounded quarterly, and his plan is to make deposits of $P at the end of every month for 6 years a) What is the effective monthly rate b) What is $P After 2 years, the interest rate changes to 5 c) How much money has he s...

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Mustafa is saving to buy a house. His goal is $750000. The interest rate is 6% compounded

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Mustafa is saving to buy a house. His goal is $750000. The interest rate is 6% compounded quarterly, and his plan is to make deposits of $P at the end of every month for 6 years.

a) What is the effective monthly rate?

b) What is $P?

After 2 years, the interest rate changes to 5%.

c) How much money has he saved so far?

d) If he keeps on making the same monthly deposit, how much money will he have saved after 6 years?

e) If he still wants to save exactly $750000 by the end of 6 years, what should his monthly deposit be?

Posted Date: May 19, 2024 12:08 PM

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Mustafa is saving to buy a house. His goal is $750000. The interest rate is 6% compounded

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