4.86 Start saving for retirement immediately! Even a modest amount will add up in a hurry. Jay decides to follow this advice and puts away 1% of his annual salary of $50,000 per year. This equates to $500 on his 21 st birthday, and his salary will increase by 2%( on average) every year thereafter until jay turns 60 years old. What is the worth of Jay's account at age 60 when the annual interest rate on Jay's account is 4% per year? 4.99 a. If you are told that your effective annual interest rate is 10%, what is the nominal interest rate compounded quarterly? b. What is the effective annual interest rate if the nominal interest rate is 7%, and the frequency of compounding is once a month? c. How much time would it take for your principal to quadruple if the effective annual interest rate 5%, and the frequency of compounding is once a year