SOLUTION: hi, I am having trouble understanding this question: Five years ago Greg invested $1500 at a fixed interest rate compounded quarterly. His investment is currently valued at $28

Question 954819: hi,
I am having trouble understanding this question:
Five years ago Greg invested $1500 at a fixed interest rate compounded quarterly. His investment is currently valued at $2800. Using logs determine the annual rate of interest?
I do not understand how to find the interest rate without knowing how many years it took to grow.
thanks

Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
His investment started years ago
Use the formula:

------------------

Take the log of both sides

The annual rate is 12.68%
-------------------------
check:
------------------

close enough

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