Question 382081: a sum of $5000 deposited in an account grows to $7000 in 5 years. assuming annual compounding, what interest rate is being paid? Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! a sum of $5000 deposited in an account grows to $7000 in 5 years. assuming annual compounding, what interest rate is being paid?
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Principal p= 5000
Amount = 7000
n= 5 years
i= Interest rate
q= compounding term
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i = q([A/P]^(1/nq) - 1).
i=1*((7000/5000)^(1/5)-1)
i= 6.96 %
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m.ananth@hotmail.ca
