Problem
Jack deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $520,000. If the bank paid interest based on continuous compounding:
(a) What was the effective annual interest rate?
(b) What was the nominal annual interest rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.