Homework SourseAt what rate compounded quarterly would 4500 have to be inve
At what rate compounded quarterly would $4500 have to be invested in order to yield $5500 at the end of 7 years?
At what rate compounded quarterly would $4500 have to be invested in order to yield $5500 at the end of 7 years?
Solution
Compunding quartely :
Amount = Principal(1 +rate/400)^4n
5500 = 4500(1 + r/400)^28
1.22 = (1+r/400)^28
(1+r/400 ) = 1.22^1/28
1+ r/400= 1.00712
r = 2.848 % rate
