Howard Is Saving for a Long Holiday

question 3

Multiple Choice

Howard is saving for a long holiday.He deposits a fixed amount every month in a bank account with an EAR of 7.5%.If this account pays interest every month then how much should he save from each monthly paycheck in order to have $10,000 in the account in two years' time?

• A)$161
• B)$166
• C)$388
• D)$4818

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