SOLUTION: find the required interest rate to the nearest tenth of a percent for $1200 to grow to $1900 if the interest is compounded quarterly for 7 yr
Question 980975: find the required interest rate to the nearest tenth of a percent for $1200 to grow to $1900 if the interest is compounded quarterly for 7 yr Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! A=P{1+r/n)}^nt; you divide the interest into 4 parts per year and it is compounded 28 times
1900=1200{1+r/4}^28
divide both sides by 1200
I will round but don't do it on the calculator.
1.5833=(1+r/4)^28
take ln of both sides
0.4595=28 ln (1+r/4); divide both sides by 28
0.01641=ln (1+r/4)
raise both to the e power
1.01654=1+r/4
0.01654=r/4
r=4.1%
