Noah currently has an account balance of $2,976.45. He opened the account 11 years ago with a deposit of $1,963.45. If the interest compounds quarterly, what is the interest rate on the account?

Question

anonymous · Answer

The formula you need for this one is$$A(t)=P(1+\frac{r}{n})^{nt}$$A(t) is the amount in the account.
P is the pricipal (amount deposited).
n is the number of times per year the account is compounded.
r is the inereest rate.
t is time (in years)

anonymous · Answer

Setting up the particulars of this problem:

$$2976.45=1963.45(1+\frac{r}{4})^{4(11)}$$

anonymous · Answer

Can you solve that?