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Mathematics 15 Online
OpenStudy (anonymous):

Fan and medal What is the approximate ***quarterly*** rate of growth for an investment that has an annual interest rate of 8%?(Image below)

OpenStudy (anonymous):

OpenStudy (anonymous):

I'm so sorry, @Mokeira . Can you help one more time? The quarterly part is what confuses me. :(

OpenStudy (anonymous):

@cwrw238 do you know ?

OpenStudy (anonymous):

@princeharryyy anybody ?

OpenStudy (princeharryyy):

use formula for 1 year at rate = 8 then use it for 1/4 year at rate =r then compare to get value of r @mkbwashere

OpenStudy (anonymous):

So far i have f=p(1+0.08)^t = (1.08)^t

OpenStudy (princeharryyy):

(1+8/100)^1 = (1+r/100)^1/4

OpenStudy (princeharryyy):

solve to get answer

OpenStudy (anonymous):

So then (1+r/100)^1/4 = (1+0.08)^1/4 = (1.08)^1/4 = 0.27

OpenStudy (princeharryyy):

nope this isn't that u want to find u need to find the rate at quarter

OpenStudy (anonymous):

Will walk me through it?

OpenStudy (princeharryyy):

ohk

OpenStudy (princeharryyy):

for quarterly u do it like this Quarterly = P (1 + r/4)^4 = (quarterly compounding)

OpenStudy (princeharryyy):

and for Annually = P × (1 + r) = (annual compounding)

OpenStudy (princeharryyy):

so u don't actually need to solve the ew rate is just 8/4

OpenStudy (princeharryyy):

which means 2 % quarterly @mkbwashere

OpenStudy (anonymous):

Okay @helpmeplzzzzz! do you agree? I have no clue how to solve this

OpenStudy (princeharryyy):

for months u solve it this way (1+r/(no. of months))^(number of months) @mkbwashere

OpenStudy (mokeira):

@mkbwashere sorry i had gone to eat :)

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