GodBlessYou
Find the quarterly interest rate if the annual rate is 8%.



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

GodBlessYou
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I'm not sure what to do next..

terenzreignz
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What is your value for r?

GodBlessYou
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8%?

GodBlessYou
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@terenzreignz

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

GodBlessYou
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dw:1374770664249:dw

terenzreignz
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Yup :)

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

GodBlessYou
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What are the steps?

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

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