Answer:
2 times each year, 3.5%
Explanation:
So, lets look at our expression:
1000(1.0175)^2t
So, we know that 1000 is the dollar count
We know that 1.0175 is the percentage(In decimal form)
We also know that 2t is the compounding every year.
t on its own is a yearly compounding.
What does the 2 mean? This means that for each t, its multiplyied by 2.
Basically, for each year, the dollar count is compounded 2 times.
<u>This first fill-in box answer: 2 times.</u>
Next we have the annual intrest rate on the account.
Lets go back and look at our decimal form percentage:
1.0175
Now, to convert it to percentage form, we must multiply it by 100:
1.0175*100
=
101.75%
Remember than for a value to increase, it has to be over 100% So tecnically, this is a increase of:
1.75%
But now, we already have figured out that this compunds twice a year,
1.75% is only a single compounding.
So we must multiply this by 2:
1.75%*2
=
3.5%
<u>So the answer to the second fill-in box is 3.50%</u>
Hope this helps! :)
