Question

Find the effective rate of interest for 6% compounded quarterly.

Answer 1

helppp!!!

Answer 2

formula : \[A= P ( 1+\frac{ r }{ n })^{nt}\]

r : interest rate as a decimal so 0.06
n: (compounded) since it is quarterly n= 4

and whatever they give you either to find p = principal or A= amount over period of time

Answer 3

what's effective rate of interest?

Answer 4

In this problem the actual rate of interest is 6% per year. However the interest is calculated on a quarterly basis and the interest for each quarter is added to the principal. Therefore the effective rate of interest per year will be greater than 6%.
This problem can be solved by letting the principal be $1 and the period be 4 quarters = 1 year.\[A =1(1+\frac{0.06}{4})^{4}\]
When you calculate the amount A the effective rate of interest can be easily seen.

Answer 5

so the answer is 1.06 prcnt

Answer 6

A = 1.06136.
Therefore $1.00 has become $1.06136 after 1 year. So the effective rate of interest is\[r _{effective}=\frac{1.06136-1}{1}\times 100=you\ can\ calculate\]

Answer 7

so 6.26

Answer 8

thank youuu

Answer 9

Nearly right. I get 6.136%.