Homework Answers
Future Value = Present Value * ( 1+ Rate of Interest) ^ time
$ 18,000 = $ 13,200 * ( 1+ Rate of Interest) ^ 8
[($ 18,000 / $ 13,200 )^ ( 1/8) ] - 1 = Rate of Interest
Rate of Interest = 3.953070492%
Hence the correct answer is 3.95%
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