Barbara invested $12,300 at the midtown credit union at 6% compounded monthly for 7 years. what is the effective rate of this investment? round to the nearest hundredth of a percent

the effective rate is 52.04%

Explanation:

the formula to calculate the future value with monthly compound interests is:

FV= P[ 1+r/n] ^ (n*t)

Where

FV= Future value

P= Principal or amount of money deposited

r=annual interest rate in decimal form

n= number of times compounded per year

t= time in years

We are only interested in the effective rate, so the relevant formula is:

[ 1+r/n] ^ (n*t) so, we replace [ 1+0.06/12] ^ (12*7)

[ 1+0.005] ^ (84)  =  1.5204  we substract

1 to get the effective rate  1.5204-1 and the effective rate is 52.04%

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30