Answer:
Here it is solved for rate:
log(1 + rate) = {log(total) -log(Principal)} ÷ Years
Let's work through your example:
log(1 + rate) = {log(6,680) -log(5,000)} / 6
log(1 + rate) = (3.8247764625 -3.6989700043) / 6
log(1 + rate) = 0.020967743
If we raise 10 to the 0.020967743 power
10^0.020967743 it produces 1 plus the rate
1 plus the rate = 10^0.020967743 = 1.0494644773
There fore the rate = .0494644773 which equals
4.94644773 per cent
Source: https://www.1728.org/compint2.htm
Step-by-step explanation:
