document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1067712>Question 1067712</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A deposit of $2700 in a savings account reaches a balance of $3136.37 after 5 years. The interest on the account is compounded monthly. What is the annual interest rate of the account? (Round your answer to the nearest whole number.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #682826 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=682826\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 3136.37=2700(1+i)^60, where i= rate divided by 12.<BR>\n" );
document.write( "divide by 2700<BR>\n" );
document.write( "1.1616=(1+i)^60<BR>\n" );
document.write( "without rounding until the end, take logs of both sides.  Some decimal places will be omitted here but round at the end.<BR>\n" );
document.write( ".0651=60log (1+i)<BR>\n" );
document.write( "divide by 60, both sides<BR>\n" );
document.write( "0.00108=log (1+i)<BR>\n" );
document.write( "raise everything to the 10th power<BR>\n" );
document.write( "1.0025=1+i<BR>\n" );
document.write( "subtract 1<BR>\n" );
document.write( "i=0.0025<BR>\n" );
document.write( "i is the rate divided by 12.  Therefore, multiply by 12 to get the rate.<BR>\n" );
document.write( "0.03 or 3% is the rate  ANSWER<BR>\n" );
document.write( "1.0025 raised to the 60th power*2700=$3136.37 </SPAN>\n" );
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