3250=2500(1+i)^3 divide both sides by 2500
1.3=(1+i)^3 take the log of both sides
0.113943=3 log(1+i) divide both sides by 3
log(1+i)=0.037981
(1+i)=10^.037981
1+i=1.0914
i=1.0914 -1 X 100=9.14%
Solve for i:
3250 = 2500 (i+1)^3
3250 = 2500 (i+1)^3 is equivalent to 2500 (i+1)^3 = 3250:
2500 (i+1)^3 = 3250
Divide both sides by 2500:
(i+1)^3 = 13/10
Taking cube roots gives (13/10)^(1/3) times the third roots of unity:
i+1 = -(-13/10)^(1/3) or i+1 = (13/10)^(1/3) or i+1 = (-1)^(2/3) (13/10)^(1/3)
Subtract 1 from both sides:
i = -1-(-13/10)^(1/3) or i+1 = (13/10)^(1/3) or i+1 = (-1)^(2/3) (13/10)^(1/3)
Subtract 1 from both sides:
i = -1-(-13/10)^(1/3) or i = (13/10)^(1/3)-1 or i+1 = (-1)^(2/3) (13/10)^(1/3)
Subtract 1 from both sides:
Answer: | = (13/10)^(1/3)-1 =9.14%
