SOLUTION: 2) $5000 is invested for 10 year compounds quarterly, at the end of the 10 years the amount as grown to $11,500. What is the annual interest percentage rate to the rounded to the n

Question 133501: 2) $5000 is invested for 10 year compounds quarterly, at the end of the 10 years the amount as grown to $11,500. What is the annual interest percentage rate to the rounded to the nearest 100th?

Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the given equation

Plug in , , , and

Multiply

Divide both sides by 5,000

Take the 40th root of both sides

Simplify

Subtract 1 from both sides

Multiply both sides by 4

Rearrange the equation

So to the nearest hundredth, the annual interest rate is 8.42%

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