Question

Samuel currently has an account balance of $3,439.96. He opened the account five years ago with a deposit of $3,104.31. If the interest compounds quarterly, what is the interest rate on the account?

Answer 1

3439.96=C(1+i/4)^20

Answer 2

Try to solve for i and i'll tell you if you're correct.

Answer 3

a) 4.6%
b)8.3%
c).5%
d) 2.1%

I did A=P(1+r/n)^nt

I have up to 1.108= (1+x/4)^20

I don't know how to evaluate the exponent

Answer 4

You do the 20th square of 1.108.

Answer 5

Would that require logs? I don't really remember how to do that

Answer 6

Which would be 1.005141.

Answer 7

so 2.1% ?!