SOLUTION: if $ 250,000 is to grow $ 700,000 over an 8 year period at what annual rate must it be invested given that interest is compounded quaterly.

Question 1147554: if $ 250,000 is to grow $ 700,000 over an 8 year period at what annual rate must it be invested given that interest is compounded quaterly.
Answer by ikleyn(52903) (Show Source): You can put this solution on YOUR website!
.


700000 = 


 = 


2.8 = 


ln(2.8) = 32*ln(1 + r/4)


 =  = 0.032176


 =  = 1.0327


 = 0.0327


r = 4*0.0327 = 0.1308.      ANSWER.


Answer.  Annual rate should be about 13%.

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