Well, if you get a return of 1.9% per quarter, how much will 1 dollar grow to in a year.
There are 4 quarters in a year so
After one year $1 will be 1(1+0.019)^4
$${\mathtt{1}}{\mathtt{\,\times\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{0.019}}\right)}^{{\mathtt{4}}} = {\mathtt{1.078\: \!193\: \!566\: \!321}}$$
So the return on $1 is 0.078193566321 which I will round off to 0.0782 or 7.82%
so
1.9% per quarter is approx equal to 7.82% per year.
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Note that 1.9%*4=7.6%
See how the compounding effect has made the real answer bigger than this.
Well, if you get a return of 1.9% per quarter, how much will 1 dollar grow to in a year.
There are 4 quarters in a year so
After one year $1 will be 1(1+0.019)^4
$${\mathtt{1}}{\mathtt{\,\times\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{0.019}}\right)}^{{\mathtt{4}}} = {\mathtt{1.078\: \!193\: \!566\: \!321}}$$
So the return on $1 is 0.078193566321 which I will round off to 0.0782 or 7.82%
so
1.9% per quarter is approx equal to 7.82% per year.
----------------------------------------
Note that 1.9%*4=7.6%
See how the compounding effect has made the real answer bigger than this.