Answer:
Step-by-step explanation:
The equivalent interest rate is the rate that would have to be applied so it would earn the same amount in 1 year. It is computed from ...
requiv = (1 +r/n)^n -1
requiv = (1 +0.07/4)^4 -1 ≈ 7.186%
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"Compounded quarterly" means interest is compounded 4 times per year. In 4 years, it will be compounded 4·4 = 16 times.
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The balance in the account after 4 years is ...
$600·(1 +.07/4)^(4·4) ≈ $791.96
Answer:
1.75% and 16 times
Step-by-step explanation:
took the test! (:
