### Home > AC > Chapter 16 > Lesson 16.9.1.2 > Problem 9-30

9-30.

**Challenge: Your bank offers an interest rate of 4.88% on savings and says that the APR (annual percentage rate) is 5.00%; that is,if I invest $100, after one year, my bank account will have $105 in it. Assume the bank rounds correctly to two decimal places. Homework Help ✎****What is the minimum whole number of times the bank compounds my interest?**What is the maximum number of times the bank compounds my interest?

Assuming the bank is giving exactly 5% APR (no rounding), how many times per year is the account compounded.

20 times.

There is no max, continuing compounding will still round to 5.00%.

Use Guess and Check.