Question

3800000=4000000(1-r)^4

Answer 1

To solve for r in this equation, we will first divide both sides by 4000000 to isolate the (1-r)^4 term:

3800000/4000000 = (1-r)^4

Simplify:

0.95 = (1-r)^4

Next, we take the fourth root of both sides to isolate the 1-r term:

(0.95)^(1/4) = 1-r

Calculate the fourth root of 0.95:

(0.95)^(1/4) ≈ 0.9869

Now, solve for r:

r = 1 - 0.9869
r = 0.0131

Therefore, the value of r that satisfies the equation is approximately 0.0131.