Answer:
Kindly check explanation
Step-by-step explanation:
Given the following :
Principal (P) = $620
Annual percentage rate (r) = 2.5% ; compounded quarterly = 2.5% / 4 = 0.025 / 4 = 0.0063
Period = t
Expression for value of account(A) :
A = P(1 + r)^t*4
A = 620(1 + 0.0063)^4t
Hence, the annual growth percentage can be found thus :
( 1 + r)^4 - 1 ; since compounding occoyrs 4 times a year
[(1 + 0.0063)^4] - 1
1.0063^4 - 1
= 1.0254391417632961 - 1
= 0.0254
