SOLUTION: Rami decided to invest $9,000 in his account. After 16 years, the amount of money turned to be $17,118. Find the interest rate required for this change. Assume quarterly compoundi

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Question 1159777: Rami decided to invest $9,000 in his account. After 16 years, the amount of money turned to be
$17,118. Find the interest rate required for this change. Assume quarterly compounding.
Found 3 solutions by josgarithmetic, ikleyn, MathTherapy:
Answer by josgarithmetic(39628) About Me  (Show Source):
Answer by ikleyn(52866) About Me  (Show Source):
You can put this solution on YOUR website!
.

9000(1+r/4)^(16*4) = 17118


(1+r/4)^64 = 1.902


1 + r%2F4 = 1.902^(1/64)


1 + r%2F4 = 1.01


r%2F4 = 1.01 - 1 = 0.01


r = 0.04


ANSWER.  The nominal interest rate is 4% annually (rounded), for this compounded account.

Solved.

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    - Compounded interest percentage problems
    - Problems on discretely compounded accounts
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Answer by MathTherapy(10556) About Me  (Show Source):
You can put this solution on YOUR website!

Rami decided to invest $9,000 in his account. After 16 years, the amount of money turned to be
$17,118. Find the interest rate required for this change. Assume quarterly compounding.
JOSGARITHMETIC IS wrong, AGAIN.

Interest rate is 4.0384%.