Question

Bill is a financial manager. He writes the equation A=2500(1.36)t to find out how much it will cost his company for a one-year loan of $2500 if the 36% APR is compounded only once. Which answer shows how the equation can be rewritten to find the interest rate that would cost Bill's company the same amount if it were compounded quarterly?

Answer 1

Answer:

Step-by-step explanation:

First, to get the rate, we divide 36% by 100 to get point 36. Since the formula is A =P(1+Interest rate/ How many units its being compounded)^ Time x How many times its being compounded. It would make the equation 2500(1+.36/4)^Compounded once which is 1 x 4 = A.

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