Find the required annual interest rate :)

[CollegeBlondie]

Find the required annual interest rate to the nearest tenth of a percent for $1200 to grow to $1600 if interest is compounded quarterly for 10 years.

The required annual interest rate is ____%

 

[ksdhart]

Well, you're given an initial balance, and told the amount it will grow to. You also know the length of time the money will gather interest and the compounding period. That's definitely enough to solve for the interest rate. Has your class/book given you a formula for this exercise? It would be a formula of F = (something in terms of principal, interest rate, compounding period, and time). So, how far have you gotten in plugging in the values you do know? Please share your work with us, even if you know it's wrong.

Edit: Was thinking of the wrong formula; fixed it.

 

[jonah2.0]

WARNING: Beer soaked rambling/opinion/observation/reckoning ahead. Read at your own risk. Would be readers can take it seriously or take it with a grain of salt. In no event shall the wandering quixotic math knight-errant Sir jonah in his inebriated state (usually in his dead tired but mentally revived inebriated state) be liable to anyone for special, collateral, incidental, or consequential damages in connection with or arising out of the use of his "enhanced" beer (and tequila/absinthe) powered views.

Find the required annual interest rate to the nearest tenth of a percent for $1200 to grow to $1600 if interest is compounded quarterly for 10 years.

The required annual interest rate is ____%

Solve for j in
\(\displaystyle 1,600=1,200\left(1+\frac{j}{4}\right)^{\!{10*4}}\)

P.S. Love your alleged profile selfie CollegeBlondie.