In an attempt to have funds for a down payment in four years, James Dupont plans to save $3,700 a year for the next four years. With an interest rate of 6 percent, what amount will James have available for a down payment after the four years? Use Exhibit 1-B. (Round FVA factor to 3 decimal places and final answer to 2 decimal places.) Future value down payment

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.