Deposit $35,000 now, and earn $5,250 every year for 12 years!! This offer makes you 15% every year. No registration fees are required. Hurry up! Only a limited number of spaces are available!

a. Calculate the effective interest rate of this offer using the unknown interest rate method. Compare with the announced interest rate of 15%/yr in the ad.

b. Should you register for the Financial Heritage Bank if you can earn 10%/yr. interest elsewhere? Explain.