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%

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Solve the two-step equation. -9x + 0.4 = 4 Which operation must be performed to move all the constants to the right side of the

Alexandra [31]

Answer:

x = -0.4

Step-by-step explanation:

We have the equation:

-9x + 0.4 = 4

First, the operation to move all the constants to the right side is subtraction since we would have to subtract 0.4 from each side, let's see this:

$-9x+0.4=4\\-9x+0.4-0.4=4-0.4\\-9x=3.6$

Now, we have all the constants on the right side of the equation.

Now, the operation we need to perform to isolate the variable is division (since the x has a -9 that is being multiplied by x) we need to do the opposite operation:

$-9x=3.6\\\frac{-9x}{-9} =\frac{3.6}{-9} \\x=-0.4$