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Math Help - effective interest rate

  1. #1
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    effective interest rate

    Here's one that is giving me brain freeze. Thank you in advance for any help>

    At what effective interest rate will a sum of money be tripled in eight years when the interest is compounded quarterly?
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  2. #2
    MHF Contributor
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    Solve for i

    (1+i)^(4*8) = 3

    Calculate j

    (1+i)^4 - 1 = j

    Alternatively, one could solve directly for j with only a little thought.
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  3. #3
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    now i see. thank you very much
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