SOLUTION: You want to buy a new car in four years which will cost you $64000. If you have $50000 in your bank account now, how much is nominal interest rate (compounded annually) to reach yo

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Question 1121036: You want to buy a new car in four years which will cost you $64000. If you have $50000 in your bank account now, how much is nominal interest rate (compounded annually) to reach your goal?
Found 2 solutions by greenestamps, ikleyn:
Answer by greenestamps(13200)   (Show Source): You can put this solution on YOUR website!




Use a graphing calculator or some similar tool to find the answer; or use logarithms:



(to 4 decimal places; but you want to keep more decimal places to get an accurate answer)


You can finish the calculations....
Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.
 = 


 =  = 1.28


1 + x =  = 1.0637. . . 


x = 1.0637 - 1 = 0.0637


Answer.  The interest rate of 0.0637 = 6.4% (approximately).


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