3 continuously, on its customers' charge accounts. What is the nomina annual interest rate? What is the effective interest rate? A bank pays 4% nominal annual interest on special three-year certificates. What is the effective annual interest rate if interest is compounded (a) Every three months? (b) Daily? (c) Continuously? A friend was left $50,000 by his uncle. He has decided to put it into savings account for the next year or so. He finds there are varying interest rates at savings institutions: 2.25% compounded every two months, 2.30% compounded quarterly, and 2.20% compounded continuously. He wishes to select the savings institution that will gi