5. Applications of Derivatives / Differentials / Problem 4
Problem 4
A money worth \)3000 is deposited in a 4−year savings account that pays a fixed annual interest rate r (expressed as a decimal) with quarterly compounding. The amount in the account after 4 years is given by a(r)=3000(1+4r)16. Find the value of r (using Newton’s method) needed for the account to grow to \)4000 after 4 years.
