After 27 Months of Quarterly Compounding, a $3,000 Debt Had

question 224

Short Answer

After 27 months of quarterly compounding, a $3,000 debt had grown to $3,810. What effective rate of interest was being charged on the debt?

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Definitions:

Sister Chromatids

Identical copies of a chromosome connected by a centromere, formed during the replication of DNA in preparation for cell division.

Genetically Identical

Organisms or cells that have exactly the same DNA sequence in every respect, typically resulting from asexual reproduction or cloning.

Analog-to-Digital Converter

A device or system that converts an analog signal, such as a sound picked up by a microphone or light entering a digital camera, into a digital signal.

Telephony

The technology that enables voice communication over distances, traditionally through the transmission of sound via phone lines but now also encompassing internet-based services.