You deposit $7,500 into an account. After 10 years, the account is worth $44,187.02. If the interest compounds quarterly, calculate the annual interest rate.

Question

asked May 25, 2019 192k views

1 Answer

Dmitry Poroh · Answer 1 · 2019-05-31T09:15:32+0000

The quarterly interest rate is
.. (44187.02/7500)^(1/40) -1 = 0.0453358
so the annual rate is 4 times that amount, about 18.13%