could someone walk me through this please? it really confuses me

Question

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For each situation, determine i. the interest rate for each conversion period ii. the number of conversion periods

a. an investment at 5%/a, compounded annually, for 5 years

b. a deposit at 8.2%/a, compounded quarterly, for 16 months

c. an investment at 4.5%/a, compounded semi-annually, for 42 months

d. a loan at 5.2%/a, compounded weekly, for 2 yearsv

frosttyfrog Feb 12, 2021

edited by Guest Feb 12, 2021

Guest · Answer 1 · 2021-02-12T07:24:58

Here is how to do one.....the rest are similar

c.) a deposit at 4.4%/a, compounded quarterly, for 7 years

.044 is interest in decimal

4 periods per year .044/4 = .011 interest PER PERIOD

7 years with QUARTERLY periods = 28 PERIODS
i = (1 + .011)²⁸- 1 = .358 35.8%