put 10, 000.00 into an account which earns interest compounded quarterly. After 2 years, she withdrew the entire balance of 10, 274.00 . What was the interest rate on the account?

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Solution

Solution

Rate : 1.35385 \dots %

Solution steps

Translate the problem into an equation:

10274 = 10000 (1 + \frac{r}{4})^{4 \cdot 2}

Solve for

r, 10274 = 10000 (1 + \frac{r}{4})^{4 \cdot 2} : r = 1.35385 \dots %

Rate : 1.35385 \dots %

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