SOLUTION: Find the required annual interest rate to the nearest tenth of a percent for $1400 to grow to $1700 if interest in compounded quarterly for 7 years.
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Question 769244: Find the required annual interest rate to the nearest tenth of a percent for $1400 to grow to $1700 if interest in compounded quarterly for 7 years. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Find the required annual interest rate to the nearest tenth of a percent for $1400 to grow to $1700 if interest in compounded quarterly for 7 years.
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A(t) = P(1+(r/n))^(nt)
1700 = 1400(1+(r/4))^(4*7)
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(1 + (r/4))^28 = 17/14
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1+(r/4) = (17/14)^(1/28) = 1.007
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r/4 = 0.007
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r = 0.028
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rate = 2.8%
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Cheers,
Stan H.
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