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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.

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.
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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.

asked
User ArthurJ
by
7.9k points

1 Answer

3 votes
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%
answered
User Dmitry Poroh
by
8.6k points
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