SOLUTION: If 2000 dollars invested in a bank account for 9 years, compounded quarterly, amounts to 2712.45 dollars, what is the interest rate paid by the account?
NOTE: Give your answer t
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NOTE: Give your answer t
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Question 1035056: If 2000 dollars invested in a bank account for 9 years, compounded quarterly, amounts to 2712.45 dollars, what is the interest rate paid by the account?
NOTE: Give your answer to the nearest percent Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! PV = present value
i = rate of interest per period
n = number of periods
t = number of years
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FV = PV·(1+i/n)^nt
2712.45 = 2000(1+i/4)^4*9
2712.45/2000 = (1+i/4)^36
(1+i/4) = (2712.45/2000)^(1/36)
1+i/4 =
1+i/4 = 1.0085
i/4 = 0.0085
i = 0.034 or 3.4%
