a.EAR=[(1+APR/m)^m]-1
where m=compounding periods
=[(1+0.17/12)^12]-1
=18.39%(Approx).
b.We use the formula:
A=P(1+r/12)^12n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=6000*(1+0.133/12)^(12*3)
=6000*1.48706604
=$8922.4(Approx).
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