Question 733540: find the annual interest rate to the nearest tenth of a percent for 1100 to grow to 1800 if the interest is compounded quarterly for 6 years Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! find the annual interest rate to the nearest tenth of a percent for 1100 to grow to 1800 if the interest is compounded quarterly for 6 years
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A(t) = P(1+(r/n))^(nt)
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1800 = 1100(1+(r/4))^(4*6)
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(1+(r/4)^24 = 18/11
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24*log(1+(r/4)) = log(18)-log(11)
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log(1+(r/4)) = 0.0089
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1+(r/4) = 10*0.0089
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1 + (r/4) = 1.0207
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r/4 = 0.0207
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r = 0.0829
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Cheers,
Stan H.
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