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Patrick deposited 8,000.00 into a new savings account that earns interest compounded quarterly. After 7 years, the balance in the account was 15,300.00. What was the interest rate on the account?Round your answer to the nearest tenth of a percent.

Solution

Patrick deposited 8, 000.00 into a new savings account that earns interest compounded quarterly. After 7 years, the balance in the account was 15, 300.00. What was the interest rate on the account?Round your answer to the nearest tenth of a percent.

Solution

Rate : 9.37110 \dots %

Solution steps

Translate the problem into an equation:

15300 = 8000 (1 + \frac{r}{4})^{4 \cdot 7}

Solve for

r, 15300 = 8000 (1 + \frac{r}{4})^{4 \cdot 7} : r = 9.37110 \dots %

Rate : 9.37110 \dots %

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