Unt 7-Sect 62 Compound iet Course Conter Need Holp? Ros For the investment situa

Question

Unt 7-Sect 62 Compound iet Course Conter Need Holp? Ros For the investment situation below, identify the annual interest rate, the length of the investment in years, the periodic interest rate, and the number of periods or the 5% compounded quartersy for (a) the annual interest rate years (D) the length of the investreent in yeers (c) the perlodic interest rate (e) the number of periads of the investment periods Need Help? for the investment situation belam, identity the snnusl interest rate, the length of the investment in years, the periodic interest nate, and the number of peniods of the 7% compounded monthly for years 8 0

Explanation / Answer

sol)

Hence we have compound quartely n=4

a)The annual interest rate(r)=8%

b)The length of investment in years(t)=5 years

c)The periodic interest rate=r/n=8/4=2%

d)the number periods for investment=nt=4x5=20

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