Answer:
3.73%
Step-by-step explanation:
The formula is
[tex]A=P(1+\frac{r}{n})^{tn}[/tex]
Here we are given that A= 5809.81 , P=4000 , t=10 years and n = 4 (compounded quaterly)
Now we have to substitute them in the formula
[tex]5809.81=4000(1+\frac{r}{4})^{40}[/tex]
[tex]\frac{5809.81}{4000}=(1+\frac{r}{4})^{40}[/tex]
[tex] (\frac{5809.81}{4000})^{\frac{1}{40}}=1+\frac{r}{4}[/tex]
[tex] (1.45)^{\frac{1}{40}}=1+\frac{r}{4}[/tex]
[tex]1.0093 = 1+\frac{r}{4}[/tex]
Subtracting 1 on both sides
[tex]0.0093=\frac{r}{4}[/tex]
[tex]r=0.0093*4[/tex]
r=0.03732
Rate is 3.73%
