## anonymous 3 years ago Find the quarterly interest rate if the annual rate is 8%.

1. terenzreignz

Let's have q for the quarterly rate of interest and r for the annual rate, shall we? :) Then we have this relation... $\Large (1+q)^4 = 1+r$

2. anonymous

I'm not sure what to do next..

3. terenzreignz

What is your value for r?

4. anonymous

8%?

5. anonymous

@terenzreignz

6. terenzreignz

yes, but that's equal to 0.08. Now just solve for q :)

7. anonymous

|dw:1374770664249:dw|

8. terenzreignz

Yup :)

9. anonymous

what do I do about the q? I'm not sure what to so next

10. anonymous

What are the steps?

11. terenzreignz

Well, for starters, get the fourth root of both sides?$\Large 1+q = \sqrt[4]{1.08}$ And work it out from here

12. anonymous

I'm still not sure what to do, would you explain step by step?