annab2k04
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I WILL GIVE BRAINLIEST. Please help!
Given the equation A=250(1.1)^t, you can determine that the interest is compounded annually and the interest rate is 10%. Suppose the interest rate were to change to being compounded quarterly. Rewrite the equation to find the new interest rate that would keep A and P the same. What is the approximate new interest rate?
Convert your answer to a percentage, round it to the nearest tenth, and enter it in the space provided, like this: 42.53%

Respuesta :

Answer: 2.5%

Step-by-step explanation:

Hi, to answer this question we have to apply the compounded interest formula:  

A = P (1 + r/n) nt  

Where:  

A = Future value of investment (principal + interest)  

P = Principal Amount  

r = Nominal Interest Rate (decimal form, 10/100= 0.1)  

n= number of compounding periods in each year (365)  

Replacing with the values given  

A=250(1+0.1/1)^t/1

A=250(1.1)^t

For a interest compounded annually, n=1, compounded quarterly n= 4 (4quarters in a year )

Interest rate 0.1 /4 = 0.025= 2.5%

greyg5nine

Answer:

9.6%

Step-by-step explanation:

yw

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