Answer:
(a)His monthly Interest Rate=0.8%
(b)Annual Interest Rate = 9.6%
(c)[tex]500(1.008)^m[/tex]
Step-by-step explanation:
For a Principal P invested at a yearly rate r, compounded m times in t years
Amount at Compound Interest= [tex]P(1+\frac{r}{m})^{mt}[/tex]
Comparing with Jerry's equation y=388 (1.008)
(a)His monthly Interest Rate= 0.008=0.8%
(b)Annual Interest Rate= Monthly Interest Rate X 12 =0.8 X 12 = 9.6%
(c)If I invest $500 at the same rate of return,
Total Money after m months
= [tex]P(1+\frac{r}{m})^{mt}[/tex][tex]=500(1+0.008)^{m}[/tex][tex]=500(1.008)^m[/tex]
