You Agree to Make 24 Deposits of $500 at the Beginning

question 4

Multiple Choice

You 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%

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