- #1
supernova1203
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Homework Statement
Annoying problem, I recently got a graphing calculator (t1-89) and according to instructions i can calculate the i (interest) on it but each problem before i attempt on a graphing calculator i attempt to solve myself manually without a graphing calculator as a safeguard to prevent myself from being handicapped and using the graphing calculator as a crutch but i cannot solve this problem manually @_@
Someone has invested 10000$ for 5 years. At the end of 5 years they would like to have 16000$ to buy a new motorcycle. What rate of interest, compounded quarterly does this person need to achieve this goal?
Homework Equations
A = P(1+i)^n where a is amount, p is principle, i is rate of interest and n is the time(in years usually)
A=P+I (here the I is interest, NOT the rate of interest which is obviously different from interest)
The Attempt at a Solution
A=P(1+i)n
16000=10000(1+i)5 (because of 5 years, but since interest is compounded quarterly n=5X4
n=20)
Similarly we shall need to divide the rate of interest as well by 4 times, that is if i can find it. That is after we divide it by a 100 to get the actual rate itself
16000/10000=(1+i)20
1.6=(1+i)^20
At this point i get stuck, any help would be greatly appreciated :)