900(1+r/4)^(4*12) = 1400
r = .0369 ≈ 3.7%
At what rate of interest would an investment have to be paid for an initial $900 to grow into $1400 in 12 years if the investment was compounded quarterly?
2 answers
1400 = 900 [1 + (i / 4)]^(12 * 4)
log(14 / 9) = 48 log[1 + (i / 4)]
log(14 / 9) = 48 log[1 + (i / 4)]
3 answers