Question

and work if possible on the exams P for the original exam or complete photo bell your answer. You may use the last page for scratch work. You will only receive credit You may Mathematica Maple or Excel unless otherwise specified - 8 Q110 Solving Exponential equations Compound Interest Mary deposits $70000 into an bank account that compounds interest quarterly (i.e 4 times per year) 4. At the end of 6 (t=6) years the balance in the account is $ 97379.37 What is the annual interest rate for this account? i.e. Solve for r) 10 points A=P(1+)

Answer 1

A = P*(1+R/n)^n*t

97379.37 = 70000*(1+(R/4))^(6*4)

(97379.37/70000)^(1/24) = 1+(R/4)

1.01385 =1+(R/4)

R/4 = 1.01385-1

R/4 = 0.01385

R =0.01385*4

R= 5.54%