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29 May, 22:31

The expression 1,000 (1.0215) 4t represents the amount of money in an account after t years. The interest is compounded, and the effective annual interest rate on the account is.

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  1. 29 May, 22:58
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    Rate = r = 8.6 %

    Step-by-step explanation:

    For compound interest

    A = P (1 + r/n) ⁴t = 1000 (1.0215) ⁴

    from above we have 1.0215 = 1 + 0.0215 = 1+r/4

    0.0215=r/4

    r = 0.0215 * 4=0.086 = 8.6 %

    where A is the amount

    P = Principal

    interest Rate = r

    n = number of times interest is applied per year

    t = number of years (time)

    for t = 1

    A = 1000 (1.0215) ⁴ = 1000 (1.0888) = $ 1088.813

    for t = 2

    A = 1000 (1.0215) ⁸ = 1000 (1.18554) = $1,185.515
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