If the balance of an account (which earns interest quarterly) is $9,734.33 at the beginning of the current compound period (which is the balance at the end of the previous compound period) and the interest earned at the end of the current compound period is $36.99, then determine the annual interest rate of the account. Write the interest rate as a percent and round the percent value to two decimal places.
If the balance of an account (which earns interest quarterly) is $9,734.33 at the beginning of the current compound period (which is the balance at the end of the previous compound period) and the interest earned at the end of the current compound period is $36.99, then determine the annual interest rate of the account. Write the interest rate as a percent and round the percent value to two decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:If the balance of an account (which earns interest quarterly) is $9,734.33 at the
beginning of the current compound period (which is the balance at the end of the
previous compound period) and the interest earned at the end of the current
compound period is $36.99, then determine the annual interest rate of the account.
Write the interest rate as a percent and round the percent value to two decimal
places.
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