Ian invested an amount of $16,000 in a mutual fund. After 3 years and 3 months the accumulated value of his investment was $17,066.26. What is the quarterly compounded nominal interest rate of the investment?
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Step 1: The formula for compound interest is: $$A = P(1 + \frac{r}{n})^{nt}$$ where: * A is the accumulated amount * P is the principal amount * r is the annual interest rate * n is the number of times that interest is compounded per year * t is the time the money Show more…
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