(a) Paul has an account which earns interest at 1% per month. What is the EAR (Effective Annual interest Rate)? (1 mark)

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(a) Paul has an account which earns interest at 1% per month. What is the EAR (Effective Annual interest Rate)? (1 mark)

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A Paul Has An Account Which Earns Interest At 1 Per Month What Is The Ear Effective Annual Interest Rate 1 Mark 1
A Paul Has An Account Which Earns Interest At 1 Per Month What Is The Ear Effective Annual Interest Rate 1 Mark 1 (26.58 KiB) Viewed 91 times
(a) Paul has an account which earns interest at 1% per month. What is the EAR (Effective Annual interest Rate)? (1 mark) (b) Paul has struck an agreement to buy his Dad's car. The sale will take place when Paul can pay the depreciated value of the car. The car is valued at $28,000 today, but loses 3% in value each month due to depreciation. Paul has $20,000 in his account which earns interest 1% per month. Calculate how long (in months) Paul must wait before he can buy the car. (3 marks) Note: You will not get full marks if you use Excel.
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