Answer:
Step-by-step explanation: The equation that models the final balance A given principal P and time t is:A = P(1 + 0.077)^tTo find the equivalent monthly interest rate, we need to find the rate that when compounded monthly gives the same final balance as the annual rate of 7.7% compounded annually.First, we know that 1 year has 12 months, so we can find the number of months in t years by multiplying t by 12.Let's call this number of months n.n = t*12Next, we can use the property of exponents that (a^b)^c = a^(bc) and rewrite the equation as:A = P(1 + 0.077)^(n/12)Now we can find the monthly rate (r) by dividing the annual rate by 12r = 0.077/12 = 0.006416666666666666In percentage form, the equivalent monthly interest rate is approximately 0.64 %