SOLUTION: solving an algebra equation for an interest rate parity problem in finance... 1+.0413 = (4.9260)(1+k)(1/5.0110) Solution given in my workbook gives k = 5.93% I have tried

Question 143345: solving an algebra equation for an interest rate parity problem in finance...
1+.0413 = (4.9260)(1+k)(1/5.0110)
Solution given in my workbook gives k = 5.93%
I have tried every which way to compute the 3 multiplication terms which is where I'm going wrong and then trying to solve but I never get that answer? How do you solve?

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
1+.0413 = (4.9260)(1+k)(1/5.0110)
Solution given in my workbook gives k = 5.93%
-------------------
1.0413 = 4.9260(1+k)(0.1995609659..)
1.0413 = (0.9830373179)(1+k)
1+k = 1.059268027
k = 0.059268027
k = 5.9268027%
Rounding to two decimal places you get 5.93%
=============================
Cheers,
Stan H.
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