Eric is planning to save $47.17 every month for 4 years. He plans to make his first savings contribution in 1 month from today. If he currently has $901.00 saved and expects to have $3,981.10 in 4 years from today, then what is the EAR that he expects to earn? O A rate less than 2.93% or a rate greater than 9.34% OA rate equal to or greater than 8.98% but less than 9.34% OA rate equal to or greater than 5.79% but less than 8.70% A rate equal to or greater than 2.93% but less than 5.79% A rate equal to or greater than 8.70% but less than 8.98%

Eric is planning to save $47.17 every month for 4 years. He plans to make his first savings contribution in 1 month from today. If he currently has $901.00 saved and expects to have $3,981.10 in 4 years from today, then what is the EAR that he expects to earn? O A rate less than 2.93% or a rate greater than 9.34% OA rate equal to or greater than 8.98% but less than 9.34% OA rate equal to or greater than 5.79% but less than 8.70% A rate equal to or greater than 2.93% but less than 5.79% A rate equal to or greater than 8.70% but less than 8.98%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 14P

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Question

Eric is planning to save $47.17 every month for 4 years. He plans to make his first savings contribution in 1 month from today. If he currently has $901.00
saved and expects to have $3,981.10 in 4 years from today, then what is the EAR that he expects to earn?
O A rate less than 2.93% or a rate greater than 9.34%
O A rate equal to or greater than 8.98% but less than 9.34%
O A rate equal to or greater than 5.79% but less than 8.70%
O A rate equal to or greater than 2.93% but less than 5.79%
O A rate equal to or greater than 8.70% but less than 8.98%

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