All categories

3 years ago

What is the effective annual rate for an APR of 10.60 percent compounded quarterly?

Mathematics

1 answer:

Musya8 [376]3 years ago

7 0

Answer:

<em>The effective annual rate is 11.03%</em>

Step-by-step explanation:

The effective interest rate is calculated through the formula:

$r = (1 + i/n)^n - 1$

In this formula, r represents the effective interest rate, i represents the stated interest rate or APR, and n represents the number of compounding periods per year.

For a quarterly compounded interest, n=4. The APR i=10.60%=0.106

Given an APR r, the effective annual rate for a quarterly compound is:

$r = (1 + 0.106/4)^4 - 1=1.0265^4-1$

$r=1.11029-1=0.1103$

The effective annual rate is 11.03%

You might be interested in

Two events, A and B, are independent of each other. P(A) = 1/6 and P(A and B) = 1/8 What is P(B) written as a decimal? Round to

Leona [35]

P(B) = 0.75.

For independent events, P(A and B) = P(A)*P(B). This gives us

1/8 = 1/6(x)

Divide both sides by 1/6:
1/8 ÷ 1/6 = x
1/8 × 6/1 = x
6/8 = x
3/4 = x
0.75 = x

5 0

4 years ago

Suppose a consumer product researcher wanted to find out whether a highlighter lasted less than the manufacturer's claim that th

11111nata11111 [884]

Answer:

The null hypothesis is $H_0: \mu = 14$

The alternate hypothesis is $H_a: \mu < 14$

The test statistic is t = -1.95.

The p-value is of 0.0292. This means that for a level of significance of 0.0292 and higher, there is sufficient evidence to conclude that the highlighters wrote for less than 14 continuous hours.

Step-by-step explanation:

Suppose a consumer product researcher wanted to find out whether a highlighter lasted less than the manufacturer's claim that their highlighters could write continuously for 14 hours.

At the null hypothesis, we test if the mean is 14 hours, that is:

$H_0: \mu = 14$

At the alternate hypothesis, we test if the mean is less than 14 hours, that is:

$H_a: \mu < 14$

The test statistic is:

$t = \frac{X - \mu}{\frac{s}{\sqrt{n}}}$

In which X is the sample mean, $\mu$ is the value tested at the null hypothesis, s is the standard deviation of the sample and n is the size of the sample.

14 is tested at the null hypothesis:

This means that $\mu = 14$

X = 13.6 hours, s = 1.3 hours. Sample of 40:

In addition to the values of X and s given, we have that $n = 40$

Test statistic:

$t = \frac{X - \mu}{\frac{s}{\sqrt{n}}}$

$t = \frac{13.6 - 14}{\frac{1.3}{\sqrt{40}}}$

$t = -1.95$

The test statistic is t = -1.95.

P-value:

The p-value of the test is the probability of finding a sample mean lower than 13.6, which is a left tailed test, with t = -1.95 and 40 - 1 = 39 degrees of freedom.

Using a calculator, the p-value is of 0.0292. This means that for a level of significance of 0.0292 and higher, there is sufficient evidence to conclude that the highlighters wrote for less than 14 continuous hours.

5 0

3 years ago

Suppose r contains a reference to a new rectangle(5, 10, 20, 30). which of the following assignments is legal? (look inside the

Korvikt [17]

The legal in this following assignments is no other than e. measurable e = r. It is measurable because r contains a reference to a new rectangle(5, 10, 20, 30). So the <span>interfaces the rectangle class implements is measurable, we really can measure it by solving the rectangle sides.</span>

6 0

4 years ago

A mobile phone carrier charges an extra fee if a customer uses more than 500 minutes each month. Tom has already used 230 minute

Gekata [30.6K]

The answer is x + 230 ≤ 500

4 0

3 years ago

Read 2 more answers

Solve. y=x−6 3x+2y=8 Use any method.

sertanlavr [38]

Answer:

The answer is x=4 and y=−2

7 0

3 years ago