SOLUTION: If I invest $10,000 and it grows to 25,000 in 12 years what is the annual interest rate if the interest is compounded quarterly?

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Question 859498: If I invest $10,000 and it grows to 25,000 in 12 years what is the annual interest rate if the interest is compounded quarterly?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount $25,000

P= principal = $10,000

r= annual rate = 

n= periods per year = 4 

t= years = 12

25000%2F+10000+=+%281%2Br%2F4%29%5E%2848%29

 root%2848%2C+2.5%29+=+1+%2B+.25r

     (1.019 - 1)/.25 = r = .076  0r r = 7.6%