Answer:
10.67% per quarter
42.68% per year
Step-by-step explanation:
The value of r that would be ensure the initial amount gives 1.5 times future value in in one year can be computed using rate formula in excel as below:
=rate(nper,pmt,-pv,fv)
nper is 1 year multiplied 4 quarters=4
pmt is the amount invested periodically and it is zero
Assume that $1000 was invested
FV which is the future value=1.5*$1000=$1,500
PV=$1000
=rate(4,0,-1000,1500)
rate=10.67%
rate per year=10.67%
*4
