1. The interest rate used on funds deposited in a bank is determined by the amount of time the money is left on deposit. For a particular bank, the following schedule is used:
Time on deposit
Interest rate
Greater than or equal to 5 years
0.0475
Less than 5 years but greater than or equal to 4 years
0.045
Less than 4 years but greater than or equal to 3 years
0.040
Less than 3 years but greater than or equal to 2 years
0.035
Less than 2 years but greater than or equal to 1 year
0.030
Less than 1 year
0.025