<PRE><B>Question 107036</B>
A=P(1+r/2)^2
1072=1000(.5r+1)^2
1072=1000(.25r^2+r+1)
1072=250r^2+1000r+1000
250r^2+1000r-72=0
2(125r^2+500r-36)=0
r=-4.07075 not an answer because the rate has to be positive.
r=.07075...(see below)
Check:
1000(1+.070749/2)^2=1000*(1.035374...)^2=1000*1.072=1072
Ed
*[invoke solve_quadratic_equation 125, 500, -36]
</PRE>