Answer :
Answer:
1.75% and 16 times
Step-by-step explanation:
Compound interest formula:
[tex]\sf A=P(1+\frac{r}{n})^{nt}[/tex]
where:
- A = final amount
- P = initial principal balance
- r = annual interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods
Given:
- P = $600
- r = 7% = 0.07
- n = 4
- t = 4
Substituting given values into the formula:
[tex]\sf \implies A=600(1+\frac{0.07}{4})^{4 \times4}[/tex]
[tex]\sf =791.9576107...[/tex]
Equivalent interest rate:
[tex]\sf \implies \dfrac{r}{n}= \dfrac{0.07}{4}=0.0175=1.75 \%[/tex]
Number of times compounded:
[tex]\sf \implies nt=4 \times 4=16[/tex]