e) Turn in Test Quiz Section 7-2 SHARI WHETSELL Question 10. ot 10 Step 1 of T 0
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e) Turn in Test Quiz Section 7-2 SHARI WHETSELL Question 10. ot 10 Step 1 of T 01:20:11 Nicholas hopes to earn $600 in interest in 2.9 years time from $30,000 that he has available to invest. To decide if it's feasible to do this by investing in an account that compounds quarterly. he needs to determine the annual interest rate such an account would have to offer for him to meet his goal. What would the annual rate of interest have to be? Round to two decimal places. interest formulas to Enter) 2 Points Keypad Next Type here to 5Explanation / Answer
amount = interest + principal
amount = 30,000 + 600 = 30,600
applying compounded quarterly formula
A = P ( 1 + r/ n )^nt
30,600 = 30,000 ( 1 + r / 4 )^2.9*4
solving we get
r = 0.0068
annual rate of interest = 0.68%
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