Find the rate of interest required to achieve the conditions set forth. A=$5000 P=$1250 T=12 years interest is compounded quarterly

11.72% or .1172

Step-by-step explanation:

I'm going to assume that A= future or accumulated Value and P= Present value

To solve this we're going to need to use the following formula

Where i is the interest rate

n is the number of times compounding a period

t is the number of periods (in this case years)

So we have

5000=1250(1+i/4)^48

Solving this isn't that hard and can be done in a couple of steps

first divide both sides by 1250

5000/1250=(1+i/4)^48

Now cancel out the exponent by doing the 48th root

1.0293=1+i/4

subtract 1 and multiply both sides by 4 to get

i=.1172

This means that i= 11.72%

square root

step-by-step explanation:

- 70

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