Question

thanks

Answer 1

use the formula

\[A = P(1 + r/100)^n\]

in your question the future value A = 2199.21 P = 1668.17 n = 9 x 4 = 36

so

\[2199.21 = 1668.17(1 + r/100)^{36}\]

divide both sides by 1668.17

\[1.31834 = (1 + r/100)^{36}\]

take the 36th root of both sides

\[\sqrt[36]{1.31834} = (1 + r/100)..... 1.00771 = 1 + r/100\]

subtract 1 from both sides

0.00771 = r/100

then r = 0.771% per quarter.... to find the annual rate, multiply by 4

Answer 2

thank you for your help i understand it now