SOLUTION: Hello, I am trying to solve for the rate 980(1+r)^20 = 3725.37 I know the answer is 6.9% but I can't figure out how to get the answer on my own, any help would be greatly app

Algebra ->  Finance -> SOLUTION: Hello, I am trying to solve for the rate 980(1+r)^20 = 3725.37 I know the answer is 6.9% but I can't figure out how to get the answer on my own, any help would be greatly app      Log On


   

Question 118249This question is from textbook investments
: Hello, I am trying to solve for the rate
980(1+r)^20 = 3725.37
I know the answer is 6.9% but I can't figure out how to get the answer on my own, any help would be greatly appreciated. This question is from textbook investments

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
980(1+r)^20 = 3725.3
(1+r)^20 = 3.8013
Take the 20th root of both sides to get:
1+r = 1.0690
r = 0.0609
r = 6.09%
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Cheers,
Stan H.