SOLUTION: Nicole's investments doubled from $1000 to $2000 over 8 years. she knows that the interest was compounded quarterly. what annual rate did she get on her investment?

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Question 558161: Nicole's investments doubled from $1000 to $2000 over 8 years. she knows that the interest was compounded quarterly. what annual rate did she get on her investment?
Answer by mananth(16949) About Me  (Show Source):
You can put this solution on YOUR website!
Principal P = 1000
Amount= 2000
years=n
compounded (t) 4
Rate = 8 0.02
Amount = P*((n+r)/n)^n

2000 = 1000 *( 1 + 0.02 )^ n*t
2 = *( 1 + 0.02 )^ n* 4
ln 2 = 4 n *ln 1.02
0.69 = 4 0.02 *n
8.75 = n