Answer
a) $3 \%$
b) $3.034 \%$
c) $3.045 \%$
Work Step by Step
(a) The effective annual rate for an account paying $3\%$ compounded annually is $3 \%$
(b) The interest rate per quarter is $3 / 4$. Therefore, the effective interest rate is
$$i= \left(1+\frac{3}{4}\right)^{4}-1= 3.034\%$$
(c) The interest rate per day is $3/ 365$. Therefore, the effective interest rate is
$$i= \left(1+\frac{3}{365}\right)^{365}-1= 3.045 \%$$
