document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=59795>Question 59795</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What rate of interest, to the nearest tenth of a percent, compounded quarterly is needed for an investment of $1500 to grow to $2700 in 10 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #41058 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=41058\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> What rate of interest, to the nearest tenth of a percent, compounded quarterly is needed for an investment of $1500 to grow to $2700 in 10 years?<BR>\n" );
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document.write( "A=S(1+r/n)^(nt)<BR>\n" );
document.write( "2700=1500(1+r/4)^(4*10)<BR>\n" );
document.write( "9/5 = (1+r/4)^40<BR>\n" );
document.write( "Take the log of both sides to get:<BR>\n" );
document.write( "0.2552725...=40log(1+r/4)<BR>\n" );
document.write( "log(1+r/4)=0.0063818...<BR>\n" );
document.write( "1+r/4=10^0.006318...<BR>\n" );
document.write( "1+r/4=1.014803...<BR>\n" );
document.write( "r/4=0.014803...<BR>\n" );
document.write( "r=0.0592<BR>\n" );
document.write( "r=5.9%<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );