Question

Mardie invested $5,500 in an account that compounded monthly. After 4 years and no further deposits, she had $7,000 in the account. What was the account’s interest rate to the nearest hundredth of a percent?

Answer 1

7000=5500(1+r/12)^48
?????????

Answer 2

good so far, now try to solve for r
divide by 5500
then use logs

Answer 3

oops nevermind about the logs, haha take 48th root

Answer 4

could you show it cuz i get this really huge mumber

Answer 5

(7000/5500) = (1+r/12)^48
1.2727 = (1+r/12)^48
(1.2727)^1/48 = 1+ r/12
1.005 = 1 + r/12
.005 = r/12
.06044 = r