You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5…

You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5 years from now. Assume the car will cost you $30,000 and your deposits earn you interest at 6% p.a, compounded annually

Question: Instead of making annual deposits, you would like to make your deposit monthly and the bank is happy to pay your interest on a monthly basis. What is the APR that would make the bank indifferent to these two way of paying interest?