Answer:
r = 1.7 percent
Step-by-step explanation:
I = P(1+r)^nt
assuming the principal is the same
yearly
I = (1 +.07)^1
quarterly
I = (1+ r) ^4t
lets find the quarterly interest rate if we get the same interest
(set the equations equal)
(1 +.07)^1= (1+ r) ^4
simplify
1.07 = (1+r) ^4
take the 4th root on each side
(1.07) ^ (1/4) = (1+r) ^ 4 ^ (1/4)
1.017058525 = 1+r/4
subtract 1
.017058525 = r
multiply by 100
r = 1.7 percent
