SOLUTION: At what rate do we have to invest $1900 for 4 years compounded monthly to obtain a final amount of $2250?

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Question 962644: At what rate do we have to invest $1900 for 4 years compounded monthly
to obtain a final amount of $2250?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28+n%2At+%29+
+n+=+12+
+t+=+4+
+P+=+1900+
+A+=+2250+
---------------
+2250+=+1900%2A%28+1+%2B+r%2F12+%29%5E%28+12%2A4+%29+
+1.18421+=+%28+1+%2B+r%2F12+%29%5E48+
Take the log of both sides
+.073429+=+48%2Alog%28+1+%2B+r%2F12+%29+
+.0015298+=+log%28+1+%2B+r%2F12+%29+
+10%5E.0015298+=+1+%2B+r%2F12+
+1.0035287+=+1+%2B+r%2F12+
+r%2F12+=+.0035287+
+r+=+.042344+
The rate is 4.23%
check:
+1.18421+=+%28+1+%2B+r%2F12+%29%5E48+
+1.18421+=+%28+1+%2B+.042344%2F12+%29%5E48+
+1.18421+=+%28+1+%2B+.003529+%29%5E48+
+1.18421+=+1.18421+
OK