Recurrence

[danfer073]

Need help with question 17

[Aaron]

The question is asking for R, which is the rate (compounding monthly):

100% (original amount) = 1

12.6% annual rate (need this as a monthly figure) = 1.05% (divide 12.6 by 12 months)

represent 1.05% (one point zero five, not one hundred and five) as a decimal = 0.0105

1 (100%, original amount) + 0.0105 (rate of interest monthly) = 1.0105 (answer is C)



Edit: Just realised this thread is 11 days old, whoops!