A sum of $650 is invested for 10 years and the interest is compounded quarterly. There is $1,500 in the account at the end of 10 years.
What is the nominal annual rate?
The nominal annual rate is ____%.
Round your final answer to 3 decimal places. Please show me how you got it since I am not getting it.
What is the nominal annual rate?
The nominal annual rate is ____%.
Round your final answer to 3 decimal places. Please show me how you got it since I am not getting it.
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1500 = 650[1 + r/4]^(4 * 10)
1500/650 = [(4 + r) / 4]^40
(30 / 13)^(1/40) = (4 + r) / 4
4[(30/13)^(1/40)] - 4 = r
0.0845050644772889821774071286879 = r
8.451% = r
1500/650 = [(4 + r) / 4]^40
(30 / 13)^(1/40) = (4 + r) / 4
4[(30/13)^(1/40)] - 4 = r
0.0845050644772889821774071286879 = r
8.451% = r