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e-Money rates. An internet company, e-Money, is offering a money market account with an A.P.R. of 5%. What is the effective annual interest rate offered

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e-Money rates. An internet company, e-Money, is offering a money market account with an A.P.R. of 5%. What is the effective annual interest rate offered by e-Money if the compounding interval is (a) annual N (b) monthly (c) quarterly (d) continuously? Continuously compounded interest rate is the A.P.R when the compounding frequency goes to infinity. You might find the following identity useful: e = limk-10 (1+2)*

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