Need help!
At what interest rate, to the nearest hundredth of a percent, will $16,000 grow to $20,000 if invested for 5.25 years and interest rate compounded quarterly?
IIRC
Where,
C is the compounded amount
P is the principle (starting) amount
p is the rate (what you're after)
n is time.
Given that it is done quarterly for 5.25 years,
Let's do some algebra with our n value as 21.
Original Equation
Multiply out by P
Take the 21st root of both sides.
multiply both sides by 21, then subtract 21
Plug in the values
That should find you your rate.
x = 21((1.25)^(1/21)) -21 - Wolfram|Alpha
p = 22.43%
Sorry, I got the equation wrong.
This is the correct one:
C is the compounded amount
P is the principle (starting) amount
p is the rate (what you're after)
n is times compounded annually.
t is the number of years.
Doing the same sort of stuff..
p = 0.0427302 or 4.3%
x = 4((1.25)^(1/21)) -4 - Wolfram|Alpha