Answer:
=250(1.025)∧4t
Step-by-step explanation:
Using the compound interest formula we can find the expression for the total amount that accumulates in the given time t.
A=P(1+R/n)ⁿᵇ
where A is the amount, P the principal amount, R the rate as a decimal n is the number of times it is compounded and b the time.
When compounded annually, the expression becomes
A=250(1.1)∧t
When compounded quarterly, we introduce the n in our expression.
A=250(1+0.1/4)∧4t
=250(1.025)∧4t
Answer:
[tex]A=250(1.025)^{4t}[/tex]
Step-by-step explanation:
[tex]A=250(1.1)^{t}[/tex]
The interest rate is 10% or 0.1
n = 1
The compound interest formula is : [tex]A=p(1+\frac{r}{n})^{nt}[/tex]
n is the number of times amount is compounded.
Lets say the interest rate were to change to being compounded quarterly.
So, here A, p will remain same, r will be divided by 4 and n will change to 4.
So, new equation will be :
[tex]A=250(1+\frac{0.1}{4})^{4t}[/tex]
=> [tex]A=250(1.025)^{4t}[/tex]
The approximate new interest rate will be = [tex]10/4/100=0.025[/tex] and in percentage it is 2.50%.
