Chapter 4 - Exponential Functions - 4.4 Applications to Compound Interest - Exercises and Problems for Section 4.4 - Exercises and Problems - Page 167: 7

a)$\$ 505.00$ b) $\$ 505.02$ c) $\$ 505.03$

(a) The interest rate per year is $0.01/ 1$. Therefore, the effective interest rate is $$S= 500\left(1+\frac{0.01}{1}\right)^{1}= \$ 505.00$$ (b) The interest rate per week is $0.01 / 52$. Therefore, the effective interest rate is $$S= 500\left(1+\frac{0.01}{52}\right)^{52}= \$ 505.02$$ (c) The interest rate per week is $0.01 / 525600$. Therefore, the effective interest rate is $$S= 500\left(1+\frac{0.01}{525600}\right)^{525600}= \$ 505.03$$