Question

determine the effective rate for $1 invested for 1 year at 7.6% compounded quarterly

Answer 1

The amount at the end of 1 year is given by
\[A=P(1+r)^{t}......................(1)\]
where A is the amount after t quarters, P is the principal and r is the quarterly interest as a decimal.
Substituting in (1) gives
\[A=(1+\frac{0.076}{4})^{4}=you\ can\ calculate\]
When you have found A the effective annual rate is obvious.

Answer 2

thank you

Answer 3

You're welcome. Have you found the value of A?

Answer 4

i had a call to take.. im working the prob now

Answer 5

Good :)

Answer 6

i came up with 1.078

Answer 7

Close. 1.0782 is better.
The effective annual rate is found from
\[r _{effective}=(1.0782-1)\times 100\ percent\]

Answer 8

@camarogirl Have you got it yet?

Answer 9

7.82

Answer 10

7.819

Answer 11

Good work! 7.819% is correct.

Answer 12

thank you

Answer 13

You're welcome :)