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Pranav invests 1,187 in a savings accountwith a fixed annual interest rate compounded 4 times per year. After 12 years, the balance reaches 3,453.74.  What is the interest rate of the account?

 Feb 16, 2021
 #1
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3453.74 = 1187 ( 1 + r/4)12*4      solve for r

2.90964 = (1+r/4)48

log (2.90964) = 48 log (1+r/4)

log (2.90964) / 48 =   log (1+r/4)     

1.0225 = 1 + r/4

r/4 = .0225      r = 9%  annual

 Feb 16, 2021

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