You invested $7,000 in a savings deposit 5 quarters ago and it has grown to $7993...
You invested $7,000 in a savings deposit 5 quarters ago and it has grown to $7993 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a percentage to two decimal places; don’t use the % sign)
Homework Answers
Here you need to use formula of rate in excel to find the interest rate
Where
PV= $7000
FV= $7993
Nper = 5 quarter
PMT = 0
Now use the formula of Rate in excel
Since it is compounding quarterly therefore resulted rate will be come for quarter
Nominal rate of Annual Interest = 2.69*4 = 10.76
I hope this clear your doubt.
Feel free to comment if you still have any query or need something else. I'll help asap.
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