Answer: 1.2%
Step-by-step explanation:
A = P(1 + r/n)^nt
A = final amount
P = initial principal balance
R = interest rate
n = number of time interest per time period
t = number of time period elapsed
A = P(1 + r/n)^nt
1200 = 1000 (1 + r/4)^ 4*15
1200 = 1000 (1 + r/4)^60
1200 = 1000 (4 + r/4)^60
1200/1000 = (4+r/4)^60
1.2 = (4+r/4)^60
Take the 60 root of both sides
1.0030433 = (4+r/4)
4 * 1.0030433 = 4 + r
4.01217 = 4 + r
r = 4.01217 - 4
r = 0.012 = 1.2%
