The sum of $1000 was invested for 4 years and the interest was compounded annually. If this investment amounts to $1463.33 after 4 years, what was the interest rate?

Question

anonymous · Answer

$$1463.33=1000(1+\frac{ r }{ 1 })^{4}$$

anonymous · Answer

r=0.825, but when i go to check my answer i dont get 1463.33

perl · Answer

looks good so far

perl · Answer

1463.33/1000 = ( 1 + r)^4

perl · Answer

did you get that far?

anonymous · Answer

1.46333-1=r^4

anonymous · Answer

Fourth root 0.46333=r
r=0.825035441

anonymous · Answer

When i go to check my answer i dont get the $1463.33? what am i doin wrong?

anonymous · Answer

@ganeshie8

perl · Answer

you made a mistake

anonymous · Answer

where?

perl · Answer

1463.33/1000 = ( 1 + r)^4 

you cant subtract 1

perl · Answer

that is not valid step

perl · Answer

order of operations, (1+r)^4 , exponent first

anonymous · Answer

oooohhhhhh no wonderrrrr

perl · Answer

since what you have is 
1463.33/1000 = ( 1 + r)*(1+r)*(1+r)*(1+r)

perl · Answer

what you can do is take the 4th root

perl · Answer

1463.33/1000 = (1+r)^4

(1463.33 /1000 ) ^(1/4) = ( 1 + r )

anonymous · Answer

alright thanks for finding my mistake