SOLUTION: Find the annual percentage rate for an investment that earns 6% per year, compounded quarterly

SOLUTION: Find the annual percentage rate for an investment that earns 6% per year, compounded quarterly

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Question 477206: Find the annual percentage rate for an investment that earns 6% per year, compounded quarterly
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Find the annual percentage rate for an investment that earns 6% per year, compounded quarterly
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P(1+(0.06/4)^4
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= P(1.015)^4
= P(1.0614)
= P + 0.0614P
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Annual percentage rate = 6.14%
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Cheers,
Stan H.
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