Bill is a financial manager. He writes the equation A=2500(1.36)t to find out how much it will cost his company for a one-year l
oan of $2500 if the 36% APR is compounded only once. Which answer shows how the equation can be rewritten to find the interest rate that would cost Bill's company the same amount if it were compounded quarterly?
First, to get the rate, we divide 36% by 100 to get point 36. Since the formula is A =P(1+Interest rate/ How many units its being compounded)^ Time x How many times its being compounded. It would make the equation 2500(1+.36/4)^Compounded once which is 1 x 4 = A.
You can obtain information about the mean population by taking a random sample of it and taking the average of that sample. The Law of big Numbers says that the bigger the sample, the more likely we will be closer to the real mean value. In other words, the margin of error is less likely to be big.
