Question 1127163
.


            If in Finance you just achieved a level of solving such problems, I can write a formal solution 
            without any explanations - in hope that everything is clear to you.



<pre>
{{{(1+r/4)^(4*3)}}} = 1.6


{{{(1+r/4)^12}}} = 1.6


{{{1 + r/4}}} = {{{root(12,1.6)}}} = 1.04


{{{r/4}}} = 1.04 - 1 = 0.04


r = 4*0.04 = 0.16.


<U>Answer</U>.  Interest rate per annum is  0.16,  or  16%.
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