SOLUTION: You invested $9,000 in a savings deposit 7 quarters ago and it has grown to $9683 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a
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Question 1146561: You invested $9,000 in a savings deposit 7 quarters ago and it has grown to $9683 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a percentage to two decimal places Answer by VFBundy(438) (Show Source):
You can put this solution on YOUR website! 9683 = 9000 * (1 + r/4)^7
9683/9000 = (1 + r/4)^7
1.07589 = (1 + r/4)^7
(1.07589)^(1/7) = 1 + r/4
1.01050 = 1 + r/4
0.01050 = r/4
4(0.01050) = r
r = 0.0420
The annual interest rate was 4.20%.
