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9-30.

challenge problemChallenge: Your bank offers an interest rate of on savings and says that the APR (annual percentage rate) is ; that is, if I invest , after one year, my bank account will have in it. Assume the bank rounds correctly to two decimal places.

  1. What is the minimum whole number of times the bank compounds my interest?

    times

  2. What is the maximum number of times the bank compounds my interest?

    There is no max, continuing compounding will still round to .

  3. Assuming the bank is giving exactly APR (no rounding), how many times per year is the account compounded.

    Use Guess and Check.