Question

Given the equation A=250(1.1)^t, you can determine that the interest is compounded annually and the interest rate is 10%. Suppose the interest rate were to change to being compounded quarterly. Rewrite the equation to find the new interest rate that would keep A and P the same.


What is the approximate new interest rate?


Convert your answer to a percentage, round it to the nearest tenth, and enter it in the space provided, like this: 42.53%

Answer 1

Answer:

2.41%

Step-by-step explanation:

There are 4 quarters in a year, so the new equation would be:

A = 250(1 + r)^(4t)

To find the value of r, set this equal to the first equation.

250(1.1)^t = 250(1 + r)^(4t)

1.1^t = (1 + r)^(4t)

1.1 = (1 + r)^4

∜1.1 = 1 + r

r = -1 + ∜1.1

r ≈ 0.0241

r ≈ 2.41%

Answer 2

Answer:

76

Step-by-step explanation:

you got this