Travis International has a debt payment of $2.24 million that it must make 4 years from today. The company does not want to come up with the entire amount at that time, so it plans to make equal monthly deposits into an account starting 1 month from now to fund this liability. If the company can earn a return of 4.83 percent compounded monthly, how much must it deposit each month? Multiple Choice O $42,227.33 $42,39730 $46.666.67 4

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Q: compounded

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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.