A car dealership is currently offering interest rates of 12% p.a. compounding quarterly. What is the effective quarterly rate?
Question
Solution 1
The effective quarterly rate can be calculated using the formula for compound interest.
The formula is:
A = P (1 + r/n)^(nt)
Where: A = the amount of money accumulated after n years, including interest. P = the principal amount (the initial amount of money) r = annual interest rate (in decimal) Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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