Question 133501
{{{A=P(1+r/n)^(nt)}}} Start with the given equation



{{{11500=5000(1+r/4)^(4*10)}}} Plug in {{{A=11500}}}, {{{P=5000}}}, {{{n=4}}}, and {{{t=10}}}




{{{11500=5000(1+r/4)^(40)}}} Multiply 



{{{2.3=1+r/4)^(40)}}} Divide both sides by 5,000 



{{{root(40,2.3)=root(40,(1+r/4)^(40))}}} Take the 40th root of both sides



{{{1.02104=1+r/4}}} Simplify



{{{0.02104=r/4}}} Subtract 1 from both sides



{{{0.08416=r}}} Multiply both sides by 4



{{{r=0.08416}}} Rearrange the equation



So to the nearest hundredth, the annual interest rate is 8.42%