SOLUTION: If 2000 dollars invested in a bank account for 9 years, compounded quarterly, amounts to 2712.45 dollars, what is the interest rate paid by the account? NOTE: Give your answer t

Question 1035056: If 2000 dollars invested in a bank account for 9 years, compounded quarterly, amounts to 2712.45 dollars, what is the interest rate paid by the account?
NOTE: Give your answer to the nearest percent
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
PV = present value
i = rate of interest per period
n = number of periods
t = number of years
``````````````````````````````````````````````
FV = PV�(1+i/n)^nt
2712.45 = 2000(1+i/4)^4*9
2712.45/2000 = (1+i/4)^36
(1+i/4) = (2712.45/2000)^(1/36)
1+i/4 =
1+i/4 = 1.0085
i/4 = 0.0085
i = 0.034 or 3.4%
RELATED QUESTIONS
If 2500 dollars invested in a bank account for 6 years, compounded quarterly, amounts to (answered by josmiceli)

If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per... (answered by stanbon,solver91311)

If 8000 dollars is invested in a bank account at an interest rate of 10 per cent per... (answered by JulietG)

If 6000 dollars is invested in a bank account at an interest rate of 5 per cent per year... (answered by josgarithmetic,math_tutor2020)

$2000 dollars was invested into the account at 3% for 5 years. How long will it take for (answered by ewatrrr)

Sarah invested 100 dollars in a bank account with an interest rate of 2% compounded... (answered by josgarithmetic)

2000 dollars is invested in a bank account at an interest rate of 7 percent per year,... (answered by stanbon)

If 1100 dollars is invested in an account for 10 years. Find the value of the investment... (answered by ikleyn)

Find the balance in an account after 5 years if $2000 is invested at 6% interest... (answered by KMST)