Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 2 - Nonlinear Functions - Chapter Review - Review Exercises - Page 114: 96


The effective rate is $7\%$

Work Step by Step

$7\%$ compounded quarterly Using the formula, we get $(1+\frac{0.07}{4})^4-1=(1.0175)^4-1\approx 0.07$ The effective rate is $7\%$
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