SOLUTION: Find the interest rate necessary for a present value of $28,955 to grow to a future value of $33,925.40 if interest is compounded quarterly for two years
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Question 972811: Find the interest rate necessary for a present value of $28,955 to grow to a future value of $33,925.40 if interest is compounded quarterly for two years Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! Find the interest rate necessary for a present value of $28,955 to grow to a future value of $33,925.40 if interest is compounded quarterly for two years
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--> 8 compounding periods
33925.40 = 28955*(1 + r)^8
(1 + r)^8 = 1.17165947
--> 2% per period
= 8% per year
