Answer:
The interest rate was 5.24%.
Step-by-step explanation:
You can use the following formula to calculate the interest rate:
i=n*((A/P)^1/nt-1), where:
i= interest rate
n= number of times interest is compounded= 4
A=value of investment= 3425
P= principal= 2500
t=time= 6
Now, you can replace the values on the formula:
i=4*((3425/2500)^1/4*6-1)
i=4*(1.37^1/24-1)
i=4*0.0131
i=0.0524
According to this, the answer is that the interest rate was 5.24%.
