Answer
a. 8%;
b. 8.1%
Work Step by Step
a. Annually
A = $P(1 + \frac{r}{m})^{tm}$
$7500 = 5000 (1 + \frac{r}{1})^{5(1)}$
$(1 + \frac{r}{1})^{5}=\frac{3}{2}$
$r = 0,08 =$8%
b. Quarterly
A = $P(1 + \frac{r}{m})^{tm}$
$7500 = 5000 (1 + \frac{r}{4})^{5(4)}$
$(1 + \frac{r}{4})^{20}=\frac{3}{2}$
$r = 0,081 =$8.1%
