Bob invests $1,000 in a simple interest account. Thirty months later, he finds the account has accumulated to $1.212.50.
a. Compute the annualized simple interest rate.
b. Compute the equivalent annualized rate compounded
(1) annually,
(2) semiannually,
(3) quarterly,
(4) monthly, and
(5) continuously.
c. Which rate in part b is largest? Why?