Answer:
Solving for rate r as a decimal
r = n[(A/P)1/nt - 1]
r = 12 × [(847.00/550.00)1/(12)(6) - 1]
r = 0.07218
Then convert r to R as a percentage
R = r * 100
R = 0.07218 * 100
R = 7.218%/year
Summary:
The interest rate required to get a total amount of $847.00 from compound interest on a principal of $550.00 compounded 12 times per year over 6 years is 7.218% per year.
