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Please help me with this problem.3.Gavin deposited money into his savings account with an annual interest rate of 9%. Gavin thought the equivalent quarterly interest rate would be 2.25%. Is Gavin correct? If he is, explain why. If he is not correct, state what the equivalent quarterly interest rate is and show how you got your answer.Answer:

User Josh Hrach
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Solution

Annual interest rate = 9%

Note that the annual interest rate is the interest for the whole year.

Now, let us fnd the equivalent quarterly interest rate

For quarterly interest rate, we have


(1)/(4)*9=(9)/(4)=2.25

Quarterly interest rate is 2.25%

Therefore, Gavin is correct

User Sergio Mcfly PYK
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