Answer:
Effective annual yield = 0.05094534 or 5.094%
Step-by-step explanation:
Given:
Rate of interest (r) = 5% = 0.05
Interest = compounded quarterly
Find:
Effective annual yield = Y
Computation:
Effective annual yield = 0.05094534 or 5.094%
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We will look at the process of solving literal equations for a particular variable ( x ).
A literal equation is usually categorized by a myraid of constants that are crucial to the process which is being modeled. We solve such equation in terms of a controlling variable ( that we can choose to alter our process ).
For the following literal equations ( x ) will be the subject of variability.
Whenever we have algebraic expressions we always refer to the rule of ( PEMDAS ).
Step 1: Solve the Parenthesis
We will solve for all the parenthesis in the equation given and write down the result:
Step 2: Highlight and combine the like terms
All like terms are classified on the basis of their constants ( a and b ) and variable ( x ) attached. We will highlight all the like terms and take simplify them on either side of the " = " sign:
We combined three like terms ( -6ab , -7ab , and 3ab ).
Step 3: Factorize and simplify the equation
Now we will look for any constant that is present in all the terms throughout the equation. We see that constant ( b ) is common in all the terms. Hence, we will factor ( b ) out and cancel it out from each side of the " = " sign as follows:
Step 4: Solve for the variable ( x )
We are left with a simple expression that relates the constant ( a ) and variable ( x ). We can go ahead and solve for the above: