Answer:
She is not right.
Step-by-step explanation:
There are 3 months in a quarter so we divide the 6% by 3 to get the monthly value.
A quarter = 3 months so 6% quarterly = 6/3 = 2 % monthly.
Answer: Naomi is not right and the monthly interest rate that gives her the interest as 6% is 5.97%
Step-by-step explanation:
The formula to calculate the future value of compound interest is
A=p (1+r÷n)^tn
A future value?
P present value assume 100
R interest rate
N frequency of time like quarterly. .
T time assume 1 year
Let's try the interest of 6% quarterly (4)
A=100×(1+0.06÷4)^(1×4)=106.136
Now try the interest of 5.97% monthly (12)
A=100×(1+0.0597÷12)^(1×12)=106.136
Which gives her the same result as 6% quarterly interest rate.
Hope it helps!
