Jim Russell’s $1,500 deposit could earn $18.87 in 12 months in a savings account paying 1.25% daily interest. How much more interest could Jim earn in a 3-month CD that pays 3.26% simple interest every 3 months during the 12-month period? EXAMPLE 4Find the effective rate of interest to the nearest hundredth percent on $1,000 deposited in an account that pays 5% annualinterest, compounded quarterly. Use the compound interest table below to help woth the calculations.Find the difference between the deposit and the compound amount.4
