Question 1200464
<br>
A. 5.5% (annual interest) compounded quarterly means (5.5)/4 = 1.375% each quarter.  The value of an initial deposit of $10,000 at that rate for 1 year (4 quarters) is<br>
{{{10000(1.01375)^4)}}} = 10561.45<br>
ANSWER: $10561.45<br>
B. The growth factor over the year is<br>
{{{10561.45/10000=1.056145}}}<br>
so the effective simple (annual) interest rate is 5.6145%<br>
ANSWER: 5.6145%<br>