SOLUTION: a sum of $5000 deposited in an account grows to $7000 in 5 years. assuming annual compounding, what interest rate is being paid?

Question 382081: a sum of $5000 deposited in an account grows to $7000 in 5 years. assuming annual compounding, what interest rate is being paid?
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
a sum of $5000 deposited in an account grows to $7000 in 5 years. assuming annual compounding, what interest rate is being paid?
...
Principal p= 5000
Amount = 7000
n= 5 years
i= Interest rate
q= compounding term
..
i = q([A/P]^(1/nq) - 1).
i=1*((7000/5000)^(1/5)-1)
i= 6.96 %
...
m.ananth@hotmail.ca
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