Question

Find the interest rate needed for an investment of $8,000 to grow to an amount of $8,800 in 4 months if interest is compounded monthly.

Answer 1

8800-8000/8000=10%
(r/12)^4=.1
ln (r/12)^4=4 ln r/12=ln .1
ln r/12=-0.57564627324851142100449786367109
r/12=e^-0.57564627324851142100449786367109
r=6.75% annual rate
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