Question

The annual interest rate on a loan is 10% which can be represented using the expression 1.10t. Write an expression that represents the quarterly interest rate.

Answer 1

Given that the interest rate is 10% which can be represented by 1.10t, the quarterly interested rate will be represented as follows:
annual rate=10%
quarterly rate=10/4=2.5%=0.025
given time t, this will be represented as :
(1+0.025)t
=1.025t