What corresponding nominal and effective rates per annum

Reference no: EM131014624

1. A city engineering department borrows money at 1.5% per month. What are the corresponding "nominal" and "effective" rates per annum?

2. You have decided to set up a fund for the education of your future child. What is the amount that will be accumulated in this sinking fund at the end of 20 years if you deposit $1000 in the fund at each of the 20 years? Assume interest rate is 10%.

Reference no: EM131014624

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