Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need some examples of how to wok out algebraic equations. For example: Suppose you deposit $2,374.00 into an account today. In 15.00 years the

I need some examples of how to wok out algebraic equations. For example: Suppose you deposit $2,374.00 into an account today. In 15.00 years the account is worth $3,988.00. The account earned ____% per year.

I've done the following:

3,988 = 2374 (1+r)^15

1.67 = (1+r)^15

And that is where I get stuck. The answer is 3.52%. How did they come up with that answer? I also have other questions that if I could see an example I could work them out myself.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Investment Analysis

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

3rd edition

111910422X, 978-1119104544, 1119104548, 978-1119104223

More Books

Students also viewed these Finance questions

Question

Give an example of an episodic memory. L01

Answered: 1 week ago