Explanation Formula used: To find the effective rate : “The effective rate E is given by E = ( 1 + r n ) n − 1 where r is rate per year and n is number of compounding periods per year.” Calculation: Calculate the effective interest on a loan of $8,500 at the rate of interest 6% for 4 years compounded quarterly. Here P = 8 , 500 , n = 4 and r = 0.06 . Substitute the above values in the compound amount formula as follows. E = ( 1 + r n ) n − 1 = ( 1 + 0

College Mathematics for Trades and Technologies (10th Edition) (What's New in Trade Math)

10th Edition

ISBN: 9780134690339

Author: Cheryl Cleaves, Margie Hobbs

Publisher: PEARSON

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Chapter 16.1, Problem 30E

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The effective interest on a loan of $8,500 at the rate of interest 6% for 4 years compounded quarterly.

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Chapter 16.1, Problem 29E

Chapter 16.1, Problem 31E

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Chapter 16 Solutions

College Mathematics for Trades and Technologies (10th Edition) (What's New in Trade Math)

Ch. 16.1 - Prob. 1LC Ch. 16.1 - Prob. 1E Ch. 16.1 - Prob. 2E Ch. 16.1 - Prob. 3E Ch. 16.1 - Prob. 4E Ch. 16.1 - Prob. 5E Ch. 16.1 - Prob. 6E Ch. 16.1 - Prob. 7E Ch. 16.1 - Prob. 8E Ch. 16.1 - Prob. 9E

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