Question

I need this done by 11:59 tonight. If anyone can please help me with this problem!

You deposit $2600 in a long-term investment fund in which the interest is compounded monthly. After 4 years, the balance is $3238.17. What is the annual interest rate? (Round your answer to one decimal place.)

Answer 1

(1+R) to the power of n = A/P
(1+R) to the power of 4 = 3238.17/2600

(1+R) to the power of 4 = 1.245
(1+R) = 4 root 1.245
1+r = 1.05631
R = 0.05631

The interest rate percentage is 5.63% (2dp)