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.
There is no max, continuing compounding will still round to 5.00%.
Use Guess and Check.