SOLUTION: What rate of interest, to the nearest tenth of a percent, compounded quarterly is needed for an investment of $1500 to grow to $2700 in 10 years?

Question 59795: What rate of interest, to the nearest tenth of a percent, compounded quarterly is needed for an investment of $1500 to grow to $2700 in 10 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
What rate of interest, to the nearest tenth of a percent, compounded quarterly is needed for an investment of $1500 to grow to $2700 in 10 years?
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A=S(1+r/n)^(nt)
2700=1500(1+r/4)^(4*10)
9/5 = (1+r/4)^40
Take the log of both sides to get:
0.2552725...=40log(1+r/4)
log(1+r/4)=0.0063818...
1+r/4=10^0.006318...
1+r/4=1.014803...
r/4=0.014803...
r=0.0592
r=5.9%
Cheers,
Stan H.
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