SOLUTION: Find the daily interest rate for each quarter. Round to the nearest millionths' place. April, May, June at 3 1/2% interest

Question 1179016: Find the daily interest rate for each quarter. Round to the nearest millionths' place.
April, May, June at 3 1/2% interest
Answer by CPhill(1959) (Show Source): You can put this solution on YOUR website!
Here's how to calculate the daily interest rate for the April-June quarter at 3 1/2% annual interest:
**1. Convert Annual Interest Rate to Decimal:**
* 3 1/2% = 3.5% = 0.035
**2. Calculate the Quarterly Interest Rate:**
* We need to find the quarterly interest rate that, when compounded four times, gives the annual rate.
* Quarterly Interest Factor: (1 + 0.035)^(1/4) ≈ 1.008682
* Quarterly Interest Rate: 1.008682 - 1 ≈ 0.008682
**3. Determine the Number of Days in the Quarter:**
* April: 30 days
* May: 31 days
* June: 30 days
* Total: 91 days
**4. Calculate the Daily Interest Rate:**
* We need to find the daily interest rate that, when compounded 91 times, gives the quarterly interest rate.
* Daily Interest Factor: (1 + 0.008682)^(1/91) ≈ 1.000095
* Daily Interest Rate: 1.000095 - 1 ≈ 0.000095
**5. Round to the Nearest Millionth:**
* 0.000095 = 95/1,000,000
**Answer:**
The daily interest rate for the April-June quarter is approximately 0.000095 or 95 millionths.

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