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February 28, 2015

February 28, 2015

Posted by **Zoey** on Monday, April 9, 2012 at 2:56pm.

- calculus -
**Henry**, Tuesday, April 10, 2012 at 11:06pmP = Po(1+r)^n.

r = Quarterly % rate.

n = 4 comp/yr + 13yrs = 52 = The # of

compounding periods.

9900 = 5000(1=r)^52.

(1+r)^52 = 9900 / 5000 = 1.98

Take Log of both sides:

52*Log(1+r) = Log1.98 = 0.296665

Log(1+r) = 0.00571.

1+r = 10^0.00571. = 1.013223.

r = 1.013223 - 1 = 0.013223 = Quarterly % rate.

APR = 4 * 0.013223 = 0.0529 = 5.29 %.

= Annual % rate.

- calculus -
**zoey**, Thursday, April 12, 2012 at 12:13pmthanks!

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