SOLUTION: Jean invested a sum of money, compounded quarterly. After 3 years, her investment grew by 60%. FInd the interest rate per annum.

Question 1127163: Jean invested a sum of money, compounded quarterly. After 3 years, her investment grew by 60%. FInd the interest rate per annum.
Answer by ikleyn(52790)   (Show Source): You can put this solution on YOUR website!
.

            If in Finance you just achieved a level of solving such problems, I can write a formal solution
            without any explanations - in hope that everything is clear to you.

 = 1.6


 = 1.6


 =  = 1.04


 = 1.04 - 1 = 0.04


r = 4*0.04 = 0.16.


Answer.  Interest rate per annum is  0.16,  or  16%.

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