SOLUTION: Rami decided to invest $9,000 in his account. After 16 years, the amount of money turned to be $17,118. Find the interest rate required for this change. Assume quarterly compoundi

Algebra.Com
Question 1159777: Rami decided to invest $9,000 in his account. After 16 years, the amount of money turned to be
$17,118. Find the interest rate required for this change. Assume quarterly compounding.
Found 3 solutions by josgarithmetic, ikleyn, MathTherapy:
Answer by josgarithmetic(39628)   (Show Source): You can put this solution on YOUR website!
Answer by ikleyn(52868)   (Show Source): You can put this solution on YOUR website!
.

9000(1+r/4)^(16*4) = 17118


(1+r/4)^64 = 1.902


1 +  = 1.902^(1/64)


1 +  = 1.01


 = 1.01 - 1 = 0.01


r = 0.04


ANSWER.  The nominal interest rate is 4% annually (rounded), for this compounded account.

Solved.

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

See the lessons
    - Compounded interest percentage problems
    - Problems on discretely compounded accounts
in this site.



Answer by MathTherapy(10556)   (Show Source): You can put this solution on YOUR website!

Rami decided to invest $9,000 in his account. After 16 years, the amount of money turned to be
$17,118. Find the interest rate required for this change. Assume quarterly compounding.
JOSGARITHMETIC IS wrong, AGAIN.

Interest rate is 4.0384%. 

RELATED QUESTIONS


The principal represents an amount of money deposited in a savings account subject to... (answered by Boreal)

The principal represents an amount of money deposited in a savings account subject to... (answered by MathLover1)

Matt decided to invest $800 in an account and was able to take out $920 from the account... (answered by Theo)

The principal represents an amount of money deposited in a savings account subject to... (answered by Theo)

The principal represents an amount of money deposited in a savings account subject to... (answered by Solver92311)

The principal represents an amount of money deposited in a savings account subject to... (answered by Solver92311)

Please help solving bi,ii
Carter expects to live for 30 years more after his retirement.  (answered by Theo)

Carter expects to live for 30 years more after his retirement. He would like to withdraw... (answered by asinus)

David deposited $10,000 in an account that pays 5 percent interest compounded annually.... (answered by ikleyn)