Test 8 Section 4 #23

I think the easiest way to get this one is to plug in some numbers. We know that every 4 quarters is a year, so the correct answer will be the one that gives us the same result for 1 year as 4 quarters, 2 years as 8 quarters, 3 years as 12 quarters, etc.

At 1 year, the original equation works out thusly:

Which answer choice(s) result in the same expression when *q* = 4? Only choice A does:

If you’re concerned that another one might also work, just check with your calculator!

Sure enough, only choice A gives you the same result after 4 quarters that the original equation gives you for 1 year.

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