Hello!
Out equation is: [tex]A=P(1+\frac{r}{n} )^t^n[/tex]
A= 6000
P=5000
N=1
T=5
R= What we are trying to find
This means we will have [tex]6000=5000(1+r)^5[/tex]
Divide both sides by 5000:
[tex]\frac{6000}{5000} = (1+r)^5[/tex]
Move the power to the other side by rooting both sides:
[tex]\frac{6000}{5000} ^1^/^5 = 1+r[/tex]
Subtract 1 from both sides:
[tex]\frac{6000}{5000} ^1^/^5 -1 = r[/tex]
Now we just need to calculate: R = 0.03713728...
I don't know how many decimal places you can have, but I will round to 2. This will give you an Interest Rate of 3.71%.
I hope this helps! :)
