Question 136367: Do you know compounding interest; Pe rt; find the "r" rate of interest
At what interest rate must $4800 be compounded annually to equal $9051.12 after 13 years, trying to find a formula like this in one of my 6 books, and I could find P, T, A but not "r",
raysecrets @hotmail.com, I have been working on this homework problem for 2 days now. Any help will be great.
Answer by checkley77(12844)   (Show Source):
You can put this solution on YOUR website! Pert
9051.12=4800(1+r)^t
9051.12/4800=(1+r)^13
1.88565=(1+r)^13
(1+r)=13th root of 1.88565
(1+r)=1.05
r=1.05-1
r=.05 or 5% is the interest rate.
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