SOLUTION: You invested $9,000 in a savings deposit 7 quarters ago and it has grown to $9683 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a

Question 1146561: You invested $9,000 in a savings deposit 7 quarters ago and it has grown to $9683 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a percentage to two decimal places
Answer by VFBundy(438) (Show Source): You can put this solution on YOUR website!
9683 = 9000 * (1 + r/4)^7

9683/9000 = (1 + r/4)^7

1.07589 = (1 + r/4)^7

(1.07589)^(1/7) = 1 + r/4

1.01050 = 1 + r/4

0.01050 = r/4

4(0.01050) = r

r = 0.0420

The annual interest rate was 4.20%.

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