Chapter 4.3, Problem 16E

Reminder Round all answers to two decimal places unless otherwise indicated.

Account Growth The table below shows the balance B in a savings account, in dollars, in terms of time t, measured as the number of years since the initial deposit was made.

Time $t$	Balance $B$
$0$	$125.00$
$1$	$131.25$
$2$	$137.81$
$3$	$144.70$
$4$	$151.94$

a. Was the yearly interest rate constant over the first 4 years? If so, explain why and find that rate. If not, explain why not. (Round the ratios to two decimal places.)

b. Estimate $B\left(2.75\right)$ and explain in practical terms what your answer means. (Assume that interest is compounded and deposited continuously.)