QUESTION 6 John is planning to save $47.62 every month for 4 years. He plans to make his first savings contribution in 1 month from today. If he currently has $994.00 saved and expects to have $3,946.50 in 4 years from today, then what is the EAR that he expects to earn? O A rate less than 2.34% or a rate greater than 7.38% O A rate equal to or greater than 4.63% but less than 6.96% O A rate equal to or greater than 2.34% but less than 4.63% O A rate equal to or greater than 6.96% but less than 7.15% A rate equal to or greater than 7.15% but less than 7.38%
QUESTION 6 John is planning to save $47.62 every month for 4 years. He plans to make his first savings contribution in 1 month from today. If he currently has $994.00 saved and expects to have $3,946.50 in 4 years from today, then what is the EAR that he expects to earn? O A rate less than 2.34% or a rate greater than 7.38% O A rate equal to or greater than 4.63% but less than 6.96% O A rate equal to or greater than 2.34% but less than 4.63% O A rate equal to or greater than 6.96% but less than 7.15% A rate equal to or greater than 7.15% but less than 7.38%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION 6
John is planning to save $47.62 every month for 4 years. He plans to make his first savings contribution in 1 month from today. If he currently has $994.00 saved and
expects to have $3,946.50 in 4 years from today, then what is the EAR that he expects to earn?
O A rate less than 2.34% or a rate greater than 7.38%
O A rate equal to or greater than 4.63% but less than 6.96%
O A rate equal to or greater than 2.34% but less than 4.63%
O A rate equal to or greater than 6.96% but less than 7.15%
A rate equal to or greater than 7.15% but less than 7.38%
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