pts. (a). Kate placed $ 200 in a saving account paying monthly interest (interest rate compounded every month). After one year his balance had grown to $250. What was the effective and nominal interest rate per year? $250 = 200 (1+i) i = 25 ia= [(1+)-1] (100) = 25% 12 25= [(1+-1] (100) Y = ? 2 pts. b). If nominal rate is 12 percent per year, under continuous compounding, If you would deposit $2000 in your bank today, your value of deposit at the end of 10 years from now? F= Pe A = 2000 e (12)(10) 4pts c. If an invest of $1,000 becomes $3,000 after six years, what is the rate of return per year? 3000 = 1000 (1+1) i = 20%