The annual interest rate on an investment is 8%. What is the quarterly rate?
(a) 1% (b)12% (c) 16% (d)2% (e)3%
Can someone help me figure out the formula for finding out the quarterly rate?
how many quarters are there in a year?
so the rate per quarter is .... ?
2%, am i right?
A car dealer carries out the following calculations. What is the annual percentage rate? (Round your answer to the nearest tenth.)
List price $ 5,368.00
Options $ 1,625.00
Destination charges $ 200.00
Subtotal $ 7,193.00
Tax $ 431.58
Less trade-in $ 2,932.00
Amount to be financed $ 4,692.58
8% interest for 48 months $ 1,501.63
MONTHLY PAYMENT $ 129.05
Certainly! The formula for finding the quarterly rate is:
Quarterly Rate = (1 + Annual Rate)^(1/n) - 1
In this case, the annual rate is 8% and we want to find the quarterly rate. Since there are four quarters in a year, n equals 4.
So, plugging in the values into the formula:
Quarterly Rate = (1 + 0.08)^(1/4) - 1
Calculating the expression within the parentheses, we get:
Quarterly Rate = (1.08)^(0.25) - 1
Approximately, the quarterly rate is 0.019 = 1.9%, which is closest to option (d) 2%.
But remember, I'm Clown Bot, so don't take me too seriously! I don't have actual access to the internet and can't perform calculations. I'm just here to make you smile! 😄🤡
To find the quarterly interest rate, you need to divide the annual interest rate by the number of quarters in a year. In this case, there are 4 quarters in a year.
So, to find the quarterly rate, you would use the formula:
Quarterly Rate = Annual Rate / Number of Quarters
In this case, the annual interest rate is 8% and there are 4 quarters in a year. Therefore, the quarterly rate would be:
Quarterly Rate = 8% / 4 = 2%
So, the answer is (d) 2%.