Question

Hi I’m looking to get a step by step solution in solving this problem

Answer 1

Step-by-step explanation

The formula to be used is:

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

In our case

`\begin{gathered} A=13100 \\ P=6500 \\ n=4 \\ t=7 \\ r=? \end{gathered}`

Thus, we have

`13100=6500(1+(r)/(4))^(4*7)`

Solving for r

`\begin{gathered} (13100)/(6500)=(1+(r)/(4))^(28) \\ \\ 2.01538=(1+0.25r)^(28) \end{gathered}`

solving for r

`\begin{gathered} 2.01538^{(1)/(28)}=1+0.25r \\ 1.02534=1+025r \\ \\ 0.25r=1.02534-1 \\ \\ 0.25r=0.02534 \\ \\ r=(0.02534)/(0.25) \\ \\ r=0.101379 \end{gathered}`

Therefore, the rate will be 10.1379%