answersLogoWhite

0


Best Answer

If the quarterly interest rate is r% then

(1 + r/100)28 = 3

=> (1 + r/100) = 31/28 = 1.040016 approx

=> r/100 = 0.040016 approx

so r = 4.0016% approx

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What rate compounded quarterly will triple any sum in 7 years?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

150 if invested for three years at a 9 percent interest rate?

$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.


What would be the ending balance of a 700 savings account earning 8 percent interest compounded quarterly after 3 years?

8 percent compounded quarterly is equivalent to approx 36% annually. At that rate, after 3 years the ending balance would be 1762.72 approx.


What is the future value of Rs1.00 invested for 10 years if 12 percent annual rate of interest is compounded quarterly?

1 x (1.03)40 = 3.26


Does money earn more compounded annually or quarterly?

It would earn more if interest were compounded quarterly but any lender will adjust the quarterly rate so that you get the same! For example, a 5% annual rate is equivalent to a rate of 4.9089% per quarter. This is one reason that some countries require the publication of Annual Equivalent Rates to enable investors to compare such differences.


What rate of interest compounded annually is required to triple an investment in 3 years?

Approx 44.225 % The exact value is 100*[3^(1/3) - 1] %


What is 2000 is compounded quarterly at a rate of 8 percent for 5 years?

The answer will depend on whether the 8% refers to a quarterly rate or an annual equivalent rate.5 years = 5*4 = 20 quarters.At a quarterly rate, it is 2000*(1.08)20?= 9321.66 approx.At an annual equivalent rate of 8% (that is 1.94% per quarter), ?the total is 938.66 approx.?The answer will depend on whether the 8% refers to a quarterly rate or an annual equivalent rate.5 years = 5*4 = 20 quarters.At a quarterly rate, it is 2000*(1.08)20?= 9321.66 approx.At an annual equivalent rate of 8% (that is 1.94% per quarter), ?the total is 938.66 approx.?The answer will depend on whether the 8% refers to a quarterly rate or an annual equivalent rate.5 years = 5*4 = 20 quarters.At a quarterly rate, it is 2000*(1.08)20?= 9321.66 approx.At an annual equivalent rate of 8% (that is 1.94% per quarter), ?the total is 938.66 approx.?The answer will depend on whether the 8% refers to a quarterly rate or an annual equivalent rate.5 years = 5*4 = 20 quarters.At a quarterly rate, it is 2000*(1.08)20?= 9321.66 approx.At an annual equivalent rate of 8% (that is 1.94% per quarter), ?the total is 938.66 approx.?


What is the compound interest on 750000 pesos borrowed at 2.50 percent interest per year for 1 year if the interest is compounded quarterly?

Since the annual interest rate is given, the fact that the interest is calculated and compounded quarterly is not relevant. The interest is 750000*2.5/100 = 18750 pesos.


How long will it take for an amount of money invested at an annual rate of 5.75 percent compounded continuously to triple in value?

y = ln(3)/ln(1.0575) = 19.65 years, approx.


Can you find the account balance on 3000 principal earning 6.4 interest compounded quarterly for 7 years?

An annual rate of 6.4% compounded quarterly means 1.6% (6.4/4) every 3 months (12/4). A period of 7 years is equivalent to 28 (7 x 4) compounding periods. Let say that the account balance is N dollars, so N = 3,000(1.016)^28 (100% + 1.6% = 1.016) N = $4,678.914


What does quarterly mean in compounded interest?

It means that the interest is paid out every three months (quarter year). That means that the interest paid out after 3 months is earning interest for the remaining nine months. The quarterly interest rate is such that this compounding is taken into account for the "headline" annual rate. As a result, if the quarterly interest is taken out, then the total interest earned in a year will be slightly less than the quoted annual rate.


Future value of 2000 in 5 years at interest rate of 5 percent?

Compounded annually: 2552.56 Compounded monthly: 2566.72


What type of interest is on a specific time frame?

The definition of periodic interest rate is an interest rate figured over a specific time frame. Compound interest is also figured on a specific time frame. For instance, some interest is compounded quarterly, some is compounded annually or semi-annually, or even monthly.