Chapter 4 - Exponential Functions - 4.4 Applications to Compound Interest - Exercises and Problems for Section 4.4 - Exercises and Problems - Page 167: 8

a)$\$ 515.00$ b) $\$ 515.22$ c) $\$ 515.23$

(a) The interest rate per year is $0.03/ 1$. Therefore, the effective interest rate is $$S= 500\left(1+\frac{0.03}{1}\right)^{1}= \$ 515.00$$ (b) The interest rate per week is $0.03 / 52$. Therefore, the effective interest rate is $$S= 500\left(1+\frac{0.03}{52}\right)^{52}= \$ 515.22$$ (c) The interest rate per week is $0.03 / 525600$. Therefore, the effective interest rate is $$S= 500\left(1+\frac{0.03}{525600}\right)^{525600}= \$ 515.23$$