Western Energy makes quarterly deposits into an account reserved for purchasing new equipment 2 years from now. The interest paid on the deposits is 12% per year, compounded monthly. (a) Identify the interest period, compounding period and the compounding frequency in the interest period, (b) Calculate the effective annual interest rate, that is, the APY.
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It is most important to account for factors like warranties and durability when purchasing durable goods or very expensive items
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Western Energy makes quarterly deposits into an account reserved for purchasing new equipment 2 year...
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