An investment offers to quadruple your money in 18 months (don’t believe it). required: what rate per three months are you being offered? (round your answer as directed, but do not use rounded numbers in intermediate calculations. enter your answer as a percent rounded to 2 decimal places (e. g., 32.

Let us assume that amount invested = 100

It quadruples meaning , it becomes = 100*4 = 400

We use the future value formula here

FV = PV*(1+r)^n

here FV = 400

PV = 100

n = 18 months or 18/3 = 6 quarters (Since we need a three month rate)

400 = 100*(1+r)^6

4 =1*(1+r)^6

r = 4^(1/6) -1

r = 1.2599 -1 = 0.2599

Interest rate being offered = 25.99% (Rounded to 2 decimals)

statement of owner's equity;

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23