Question: a) Jim is trying to decide whether to save up money using one of two accounts: i) A compound interest account with a 7.6%

a) Jim is trying to decide whether to save up money using one of two accounts: i) A compound interest account

a) Jim is trying to decide whether to save up money using one of two accounts: i) A compound interest account with a 7.6% compound interest rate that compounds interest quarterly, or ii) A compound interest account with a 7.56% compound interest rate that compounds interest monthly. Find the effective interest rates of these two accounts to decide which is the better account to use to save up money. b) Jim uses the better account from part a) to save up money. He has $400 now, but wants to save up for a computer that costs $1200 dollars. How many years (rounded to two decimal places) will it take before Jim has enough money for that computer?

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