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30 October, 06:26

Alexander deposited money into his retirement account that is compounded annually at an interest rate of 7%.

Alexander thought the equivalent quarterly interest rate would be 2%. Is Alexander correct? If he is, explain

why. If he is not correct, state what the equivalent quarterly interest rate is and show how you got your

answer. i need to show my work and everything

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Answers (1)
  1. 30 October, 06:48
    0
    The reason he is NOT correct is because a quarterly rate refers to 1/4 of a year. 7/4 does mot equal 2. it only equals 1.75, so his quarterly interest would be 1.75%.
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