SOLUTION: Principal: $16,000 Interest rate: 24% Compounded quarterly Calculate the effective rate (APY) of interest for 1 year. (Use the Table provided.) (Do not round intermediate

Question 1150075: Principal: $16,000
Interest rate: 24%
Compounded quarterly
Calculate the effective rate (APY) of interest for 1 year. (Use the Table provided.) (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
Effective rate %
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

We don't have "the table provided"....

The (annual) interest rate is 24%; compounded quarterly means 24/4 = 6%, compounded 4 times.

The growth factor is

= 1.262477 to 6 decimal places

The APY is 1.262477-1, converted to a percent.

To 2 decimal places, that is 26.25%

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