Question

For each of the following accounts, determine the percent change per compounding period. Give your answer in

both decimal and percentage form.

a. Account A has a 4% APR compounded monthly. Determine the percent change per compounding period.

i. Decimal form:

ii. Percentage form

b. Account B has a 6. 8% APR compounded quarterly. Determine the percent change per compounding period.

i. Decimal form:

ii. Percentage form:

c. Account A has a 3. 5% APR compounded daily. Determine the percent change per compounding period.

i. Decimal form:

ii. Percentage form:

Answer 1

a. Account A has a 4% APR compounded monthly. Determine the percent change per compounding period.

i. Decimal form: 0.04/12 = 0.0033 or 0.33%

ii. Percentage form: 0.33%

b. Account B has a 6. 8% APR compounded quarterly. Determine the percent change per compounding period.

i. Decimal form: 0.068/4 = 0.017 or 1.7%

ii. Percentage form: 1.7%

c. Account A has a 3. 5% APR compounded daily. Determine the percent change per compounding period.

i. Decimal form: 0.035/365 = 0.0000957 or 0.0957%

ii. Percentage form: 0.0957%