SOLUTION: Find the interest rate for the following deposit and compound amount. $8,000.00 deposit accumulating to $10,642.92 compounded quarterly for 5 years. Round to hundredths of a perc

Question 976339: Find the interest rate for the following deposit and compound amount. $8,000.00 deposit accumulating to $10,642.92 compounded quarterly for 5 years. Round to hundredths of a percent.
Please solve. Thank you.
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
Find the interest rate for the following deposit and compound amount. $8,000.00 deposit accumulating to $10,642.92 compounded quarterly for 5 years. Round to hundredths of a percent.
***
Compound Interest Formula: A=P(1+r/n)^nt, P=initial investment, r=interest rate, n=number of compounding period per year, A=amt after t-years.
For given problem:
P=8000
r=interest rate
n=4
t=5
A=10642.92
..
10642.92=8000(1+r/4)^4*5
10642.92/8000=(1+r/4)^20
raise both sides by (1/20)
1.014375=1+r/4
r/4=0.014375
r=.0575=5.75%
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