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Problems regarding interest rates

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a. If you put $1200 in the bank now, how much will you have after six years? What if you earn 12% compounded interest per year?

b. If you buy a painting for $300 and are able to sell it after 4 years for $500, what was your effective annual interest rate on your investment?

c. What is the effective interest rate of an advertised interest rate of 14% nominal rate compounded monthly?

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This solution provides calculations for various problems regarding interest rates.

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Basic economics
a. If you put $1200 in the bank now, how much will you have after six years
if you earn 12% compounded interest per year?

Compound interest formula: Future value = Present value * ...

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