Question

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

Answer 1

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

Answer 2

@cwrw238
do you know ?

Answer 3

@princeharryyy
anybody ?

Answer 4

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

Answer 5

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

Answer 6

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

Answer 7

solve to get answer

Answer 8

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

Answer 9

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

Answer 10

Will walk me through it?

Answer 11

ohk

Answer 12

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

Answer 13

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

Answer 14

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

Answer 15

which means 2 % quarterly @mkbwashere

Answer 16

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

Answer 17

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

Answer 18

@mkbwashere sorry i had gone to eat :)