Kathryn currently has an account balance of $2,248.95. She opened the account 7 years ago with a deposit of $1,762.14. If the interest compounds quarterly, what is the interest rate on the account?

Question

anonymous · Answer

help

amistre64 · Answer

work the math ..


A = P(1+r/n)^(nt)

solve for r

jdoe0001 · Answer

$\bf A=P\left(1+\frac{r}{n}\right)^{nt}
\ \quad \
A=\textit{current amount}\to \$2,248.95\
P=\textit{original amount deposited}\to \$1,762.14\
{\color{blue}{ r}}=rate\to (100\cdot r)\%\
n=\textit{compounding cycle, Quaterly, means 4 times per year}\to 4\
t=years\to 7
\ \quad \
2,248.95=1,762.14\left(1+\frac{{\color{blue}{ r}}}{4}\right)^{4\cdot 7}$

as amistre64 suggested, solve for "r"

anonymous · Answer

am confuse

jdoe0001 · Answer

hmm ?    that's the compound interest formula...above.... there's an assumption you've covered it already

anonymous · Answer

i've got 3.5 percent

jdoe0001 · Answer

hmm .. how .... hmmm how did you get 3.5%?

jdoe0001 · Answer

what did you end up with "r" as anyhow?    r= ?

anonymous · Answer

i got it thk you

jdoe0001 · Answer

yw