Question

At what nominal rate of interest compounded quarterly will $2000.00 earn $400.00 interest in three years?

At what nominal rate of interest compounded quarterly will $2000.00 earn $400.00 interest in three years?
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Answer #1

Future value = 2000 + 400 = 2,400

Answer is:

Calculator
Inputs:
PV      (2,000.00)
PMT                   -  
FV       2,400.00
N                  12
Output:
I/Y = Period rate 1.53%
APR= I/Y *4 6.12%

Rate of interest is 6.12%

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