An investor opened a money market account with a single deposit of $6000 on Dec. 31, 2001. The interest earned on the account was calculated and reinvested quarterly. The compound interest for the first 3 quarters of 2002 was $125, $130, and $145, respectively. If the investor made no deposits or withdrawals during the year, approximately what annual rate of interest must the account earn for the 4th quarter in order for the total interest earned on the account for the year to be 10 percent of the initial deposit?
Pick:
A) 3.1%
B) 9.3%
C) 10.0%
D) 10.5%
E) 12.5%
We know 10% of 6000 is 600   already earned is Rs. 400 in 3 quarters   balance to be earned is 200 on amount of 6400 (6000+400 intt)   we get quarterly Rate of Interest as 3.125% (200/6400).   annually it would be 3.125*4= 
<gadget id="calculator">3.125*4</gadget>
<output>12.5</output>
12.5%   ANSW12.5%R:12.5%
<result>E</result>
An investor opened a money market account with a single deposit of $6000 on Dec. 31, 2001. The interest earned on the account was calculated and reinvested quarterly. The compound interest for the first 3 quarters of 2002 was $125, $130, and $145, respectively. If the investor made no deposits or withdrawals during the year, approximately what annual rate of interest must the account earn for the 4th quarter in order for the total interest earned on the account for the year to be 10 percent of the initial deposit?