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March 28, 2015

March 28, 2015

Posted by **Amy** on Wednesday, January 12, 2011 at 6:42pm.

I don't know how to solve this.

Would I use this equation A=Pe^(rt)

But still I don't know because even if I put the given info into the equation I still need P and A

- Pre-calc -
**MathMate**, Wednesday, January 12, 2011 at 7:23pmThe quarterly interest is 5.25%/4=1.3125%.

Since interest is compounded quarterly, the total interest at the end of the year for an investment of 1000 is:

1000*1.013125^4

=1053.54

So the effective interest is

53.54/1000=5.354% (approximately)

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