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Mustafa is saving to buy a house. His goal is $700000. The interest rate is 6%...

Mustafa is saving to buy a house. His goal is $700000. The interest rate is 6% compounded annually, and his plan is to make deposits of $P at the end of every month for 5 years.

a) What is the effective monthly rate?

b) What is $P?

After 2 years, the interest rate changes to 8%.

c) How much money has he saved so far?

d) If he keeps on making the same monthly deposit, how much money will he have saved after 5 years?

e) If he still wants to save exactly $700000 by the end of 5 years, what should his monthly deposit be?

(Don't forget to include the future value of the money from part c)!)

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