1. A bank is offering to sell four-month certificates of deposit for $ 4,926. At the end of four months, the bank will pay $5,000 to the certificate owner. Based on a four-month interest period: a) What is the interest rate the bank is paying you? b) What are the nominal and effective interest rates on this certificate of deposit?

Please answer everything in the photos including the graph.

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4. Jenna has just entered collage and has decided to quit smoking. She wants to regain her health and save money in the process. She smokes two packs a day, which translates into roughly $30 per week. Suppose she makes weekly deposits of this money into a bank account that pays annual interest of 10%, compounded continuously. What will be balance of Jenna's account when she retires in 47 years? (Hint: If an initial amount of S. dollars is deposited in a bank that pays an annual interest of r, compounded continuously, then the future value, s(t), of the account satisfy the initial-value problem ds/dt=rs, S(0)-S,. Moreover, if deposits amounting to d dollars per year (made uniformly throughout the year) are made into the above account, then the future value of this new account, called an annuity, will satisfy dS/dt=rs+d, S(0)=S..