SOLUTION: Kara plans to invest $7,500 into an account with the interest compounded monthly. According to the bank officer, her balance will be $10,325 after 10 years. How do you determine t

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Question 917153: Kara plans to invest $7,500 into an account with the interest compounded monthly. According to the bank officer, her balance will be $10,325 after 10 years. How do you determine the interest rate for her account using the compound interest formula?
A=
P=
n=
t=
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
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 = 12
t= years = 10
10325%2F7500+=+%281%2Br%2F12%29%5E%2812%2A10%29
10325%2F7500+=+%281%2Br%2F12%29%5E%28120%29
root%28120%2C+%2810325%2F7500%29%29+= 1 + r/12
12%28root%28120%2C+%2810325%2F7500%29%29+-1%29 = r