Tia is investing $ 2500 that she would like to grow to $ 6000 in 10 years, at what annual interest rate compounded quaterly must Tia invest her money
Multply
To find the annual interest rate compounded quarterly, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the final amount (in this case $6000)
P = the initial principal (in this case $2500)
r = the annual interest rate (what we are trying to find)
n = the number of times interest is compounded per year (quarterly in this case)
t = the number of years (in this case 10 years)
We want to rearrange the formula to solve for r:
r = ( (A/P)^(1/(n*t)) - 1 ) * n
Plugging in the given values, we have:
r = ( ($6000/$2500)^(1/(4*10)) - 1 ) * 4
Simplifying this expression will give us the annual interest rate compounded quarterly.