Great Uncle Oswald has gone to his reward and has left you an inheritance. He has left you $5000 in cash. Being wise, you decide to open a savings account and save the money for a “rainy day”. The yearly interest rate is 6.25% (or 0.0625). Please answer the questions below.

a) How much is the monthly interest rate? (Don’t round off at this point. State the entire number.) This is the rate you use to calculate the interest each month.

b) How much interest will be earned at the end of the first month?

c) What will the balance be after the first month?

d) How much interest will be earned at the end of the second month?

e) How much interest has been earned all together after only 2 months?