# math help plz!

posted by .

j=6.50%
m=Daily(365)
f(effective rate)=?

f=(1+i)^n
=(1+(.0650/365))^365
=1.067152848-1
=0.067152848
=6.72%
i know how to find the "f"

but if its

j=?
m=Quarterly(4)
f=3.25%

how do i find the "j"???

• math help plz! -

Same as your example, but solve for j.
In your example, n=365, and in this case n=4 (quarterly).

f=(1+j/n)^n
f=(1+j/4)^4
1.0325=(1+j/4)^4

You can solve for j by taking the fourth root on both sides (square-root twice) to get
1+j/4 = fourth-root(1.0325)
the rest is standard algebra.

• math help plz! -

Looking at your procedure, I conclude that you are finding the equivalent annual rate for a given rate compounded daily.
I don't like the way you are writing it up. You are writing down steps connected by equal signs when they are not equal.

e.g.
f=(1+i)^n
=(1+(.0650/365))^365
=1.067152848-1

the second and third lines are NOT equal. This may sound picky to you, but math is exact.

I used to teach it this way:
let the annual rate be i
then
(1 + i = (1 + .065/365)^365
1 + i = 1.067152848
i = .067152848
effective annual rate = 6.72%

for your last question, I will assume that it asked the following,
"What annual rate compounded quarterly is equivalent to an annual rate of 3.25%

Let the quarterly rate be j
then ...
1.0325^1 = (1+j)^4
take the 4th root of both side

1.0325^(1/4) = 1+j
1.008027813 = 1+j
j = .008027813
4j = .032111251

the annual rate compounde quarterly will be 3.211%

• math help plz! -

Thnx Reiny,it is very clear to me.now i can continue the rest which has the similar questions.thnx mathmate too:)

## Similar Questions

1. ### math

what formulas do i use for this: Investments Suppose \$10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows. A) Annually B) Quarterly C) Monthly D)Daily (365 days) A) 10000*(1+.05)^10 …
2. ### math, help

I need help or hint on the setup: what is the probability that at least 2 students in a class of 36 have the same birthday?
3. ### MATH, HELP

what is the probability that at least 2 students in a class of 36 have the same birthday?
4. ### math

how would i multiply 365/365 x 364/365 x 363/365...all the way to 326/365 using excel or the ti-83 calculator without having to input all those numbers. please help. thanks.
5. ### math!

j=6.50% m=Daily(365) f(effective rate)=? f=(1+i)^n =(1+(.0650/365))^365 =1.067152848-1 =0.067152848 =6.72% i know how to find the "f" but if its j=?
6. ### math

f(x) = 64 + 27cos(2pi/365(x+145)) what would be the period i tried by solving 2pi/(2pi/365) period = 365 but this doesn't seem right
7. ### Calculus 1

I'm asked to find max and min of: L(t)=12+2.8sin((2pi/365)(t-80). I find the derivative as: L'(t)=(5.6*pi/365)*cos[(2pi/365)(t-80)] but I get lost afterwards.
8. ### Math - Compounding

Find the value of \$15,000 at the end of one year if it is invested in an account that has an interest rate of 4.50% and is compounded: a) monthly b) daily (assuming a 365-day year) c) quarterly What is the formula that should be used …
9. ### Finance

Calculate, to the nearest cent, the future value FV of an investment of \$10,000 at the stated interest rate after the stated amount of time. HINT [See Example 1.] 5% per year, compounded daily (assume 365 days/year), after 11 years …
10. ### Maths

The sum of three consecutive numbers is 365,find the numbers. X^2+y^2+z^2=365 x^2+(x+1)^2+(x+2)^2=365 After solving x=10 or -12 The nymbers are 10,11,12.

More Similar Questions