SOLUTION: The Morenos invest $10,000 in an account that grows to $12,000 in 5 years. What is the annual interest rate r if interest is compounded quarterly?

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Question 1055166: The Morenos invest $10,000 in
an account that grows to $12,000 in 5 years. What
is the annual interest rate r if interest is
compounded quarterly?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal =
r= annual rate = .
n= periods per year =
t= years =
A%28t%29%2FP+=+%281%2Br%2F4%29%5E%284%2A5%29
12000%2F10000+=+%281%2Br%2F4%29%5E%2820%29
1.2 = %281%2Br%2F4%29%5E%2820%29
root%2820%2C1.2%29+=+1+%2B+r%2F4
4%28root%2820%2C1.2%29-1%29+=r