SOLUTION: At what interest rate must $5400 be compounded annually to equal $8606.78 after 8yr? Round to the nearest percent

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Question 952807: At what interest rate must $5400 be compounded annually to equal $8606.78 after 8yr? Round to the nearest percent
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
At what interest rate must $5400 be compounded annually to equal $8606.78 after 8yr? Round to the nearest percent
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A(t) = P(1+(r/n))^(nt)
8606.78 = 5400(1+(r/1))^(1*8)
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1.5939 = (1+r)^8
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1+r = 1.06
rate = 6%
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Cheers,
Stan H.