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GodBlessYou

  • one year ago

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

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  1. terenzreignz
    • one year ago
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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... \[\Large (1+q)^4 = 1+r\]

  2. GodBlessYou
    • one year ago
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    I'm not sure what to do next..

  3. terenzreignz
    • one year ago
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    What is your value for r?

  4. GodBlessYou
    • one year ago
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    8%?

  5. GodBlessYou
    • one year ago
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    @terenzreignz

  6. terenzreignz
    • one year ago
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    yes, but that's equal to 0.08. Now just solve for q :)

  7. GodBlessYou
    • one year ago
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    |dw:1374770664249:dw|

  8. terenzreignz
    • one year ago
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    Yup :)

  9. GodBlessYou
    • one year ago
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    what do I do about the q? I'm not sure what to so next

  10. GodBlessYou
    • one year ago
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    What are the steps?

  11. terenzreignz
    • one year ago
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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

  12. GodBlessYou
    • one year ago
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    I'm still not sure what to do, would you explain step by step?

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