part b\nfind the annual interest rate for account 3 to complete the table. the math process used to find the…

part b\nfind the annual interest rate for account 3 to complete the table. the math process used to find the effective annual interest rate of account 4 has been modeled for you.\naccount 4: rewrite the base (b) of the expression:\n(1.0000938)^t=(1.0000938^365)^(t/365)=(1.03483)^t\nthe effective annual interest rate is approximately 3.483%.\n\n| | 1 | 2 | 3 | 4 |\n|--|--|--|--|--|--|\n| account | | | | |\n| annual interest rate | 3.5% | (1.035)^t | 3.531% | (1.03531)^t | 3.483% | (1.03483)^t |

part b\nfind the annual interest rate for account 3 to complete the table. the math process used to find the effective annual interest rate of account 4 has been modeled for you.\naccount 4: rewrite the base (b) of the expression:\n(1.0000938)^t=(1.0000938^365)^(t/365)=(1.03483)^t\nthe effective annual interest rate is approximately 3.483%.\n\n| | 1 | 2 | 3 | 4 |\n|--|--|--|--|--|--|\n| account | | | | |\n| annual interest rate | 3.5% | (1.035)^t | 3.531% | (1.03531)^t | 3.483% | (1.03483)^t |

Answer

Explanation:

Step1: Recall the formula for effective - annual - interest rate

The general formula for compound - interest is $A = P(1 + r)^t$, where $r$ is the annual interest rate and $t$ is the number of years. If we have an expression of the form $(1 + b)^t$ for the growth of an account balance over $t$ years, the effective annual interest rate is $b\times100%$.

Step2: Analyze Account 1

For Account 1, the expression is $(1.035)^t$. Here, $b = 0.035$. So the effective annual interest rate is $0.035\times100%=3.5%$.

Step3: Analyze Account 2

For Account 2, the expression is $(1.03531)^t$. Here, $b = 0.03531$. So the effective annual interest rate is $0.03531\times100% = 3.531%$.

Step4: Analyze Account 3

For Account 3, the expression is $(1.03483)^t$. Here, $b = 0.03483$. So the effective annual interest rate is $0.03483\times100%=3.483%$.

Answer:

Account Annual Interest Rate
1 3.5%
2 3.531%
3 3.483%