Question

Tia is investing $2500 that she would like to grow to $6000 in 10 years. At
what annual interest rate, compounded quarterly, must Tia invest her money?
Round your answer to two decimal places.

Answer 1

2500(1+r/4)^(4*10) = 6000
(1+r/4)^40 = 2.4
1+r/4 = 1.022128
r/4 = 0.022128
r = 0.0885 = 8.85%

Answer 2

6000 = 2500 (1 + r/4)^(10 * 4)

2.4 = (1 + r/4)^40

log(2.4) = 40 log(1 + r/4)


.0095053 = log(1 + r/4)

1.002213 = 1 + r/4