Question: Michael Jacks deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $520,000. If the

Michael Jacks deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $520,000. If the bank paid interest based on continuous compounding:

(a) What was the effective annual interest rate?

(b) What was the nominal annual interest rate?

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