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an account with an annual compounding and an APR of 6% 

          an account with an annual compounding and an APR of 6%

Added by Hugo C.

Elementary and Intermediate Algebra
Elementary and Intermediate Algebra
Alan S. Tussy, R. David Gustafson 5th Edition
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an account with an annual compounding and an APR of 6%
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Transcript

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00:01 To find the factor by which a savings account with an 8 % annual percentage rate compounded quarterly increases in value each year, we use the formula for compound interest, which is a equals p times 1 plus r over n to the nt, where a is the final amount, p is the initial principal, r is the annual interest rate as a decimal, and n is the number of times the interest is compounded per year.
00:26 So in this case we have an apr of .08 and the number of times compounded being quarterly is 4.
00:43 And we can think of t as 1 because we want to know what this annual, the value each year by a factor...
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