You decide to open a money market account to save for a down payment on a newhome (typically 20% of the price of the home). You make an initial deposit

of $2500to open the account and promptly forget about the account, never making anotherdeposit. (a) If the money grows at a nominal annual interest rate of 3% compounded monthlyhow much money is in the account at the end of 5 years? (b) Calculate the APY on the money market account assuming an APR of 12%. (c) Briefly explain why the bank may prefer to advertise the APY on a savings accountor money market account but advertise the APR on a mortgage.