SOLUTION: An investment pays 3.4% compounded four times a year. a. What is the annual growth factor? Round to four decimal places. b. What is the annual growth rate? Round to

Question 362660: An investment pays 3.4% compounded four times a year.
a. What is the annual growth factor?
Round to four decimal places.

b. What is the annual growth rate?
Round to two decimal places.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An investment pays 3.4% compounded four times a year.
a. What is the annual growth factor?
Round to four decimal places.
(r/n)^4 = (1+(0.034/4))^4 = 1.0344
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b. What is the annual growth rate?
Round to two decimal places.
0.0344 = 3.44%
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Cheers,
Stan H.

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