IDNLearn.com is designed to help you find reliable answers quickly and easily. Join our community to receive prompt and reliable responses to your questions from knowledgeable professionals.
Sagot :
The equivalent amount she had to start with 7 years ago is $269.90.
The function to find the effective rate per year is 1.02^4 - 1.
What is the equivalent amount?
The formula that can be used to determine the equivalent amount is:
present sum / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- r = interest rate = 8%/4 = 2%
- n = number of years = 7 x 4 = 28
{1.02^28} - 1 / 0.02 = 37.05121
$10,000 / 37.05121 = $269.90
What is the effective rate per year?
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
1.02^4 - 1
To learn more about the effective annual rate, please check: https://brainly.com/question/4064975
Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.
