Question

Samuel currently has an account balance of $3439.96. He open the account five years ago with the deposit of $3104.31. If the interest compounded quarterly what is the interest rate on the account?

Answer 1

Explanation:

$54.67

Answer 2

Explanation:

You did leave out a 4 under the r: 1.1063 = (1+r/4)^20

So you'd do both sides to the 1/20 power since 20 • 1/20 = 1

(1.1063) ^ (1/20) = 1 + r/4

Then subtract 1, and multiply by 4

4•[1.1063 ^ (1/20) - 1) = r