SOLUTION: Find the interest rate to the nearest hundredth of a percentage that will produce $3000.00, if $2500.00 is left at interest rate compounded semiannually for 4.5 years. Thank you so

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Question 860667: Find the interest rate to the nearest hundredth of a percentage that will produce $3000.00, if $2500.00 is left at interest rate compounded semiannually for 4.5 years. Thank you so much.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount

P= principal = 

r= annual rate = .

n= periods per year = 

t= years =

  3000%2F2500+=+%281%2B+r%2F2%29%5E9

root%289%2C+6%2F5%29+=+1+%2B+r%2F2

    1.0205 = 1 + r/2

     .0205 = r

      .0410 = r,   r = 4.1%