Question

You invested $5,000 in a savings deposit 9 quarters ago and it has grown to $5776 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a percentage to two decimal places; don’t use the % sign)

Answer 1

Future Value:
FV = PV (1+r)^n
Where r is Int rate per period
n - No. of periods

Particulars	Amount
Present Value	$       5,000.00
Future Value	$       5,776.00
Periods	9

Future Value = Cash Flow * ( 1 + r )^n
$ 5776 = $ 5000 ( 1 + r ) ^ 9
( 1 + r ) ^ 9 = $5776 / $5000
( 1 + r ) ^ 9 = 1.1552
( 1 + r ) = 1.1552 ^ ( 1 / 9 )
( 1 + r ) = 1.0162
r = 1.0162 - 1
r = 0.0162 i.e 1.62 %

Int Rate per quarter is 1.62%

Nominla Rate is 6.48% [ 1.62% * 12 / 3 ]

Answer in the required format is 6.48