Solving for rate r as a decimal
[tex]r=n((\frac{A}{P})^{\frac{1}{nt}}-1)[/tex]A = Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
R = Annual Nominal Interest Rate in percent
r = Annual Nominal Interest Rate as a decimal
r = R/100
t = Time Involved in years, 0.5 years is calculated as 6 months, etc.
n = number of compounding periods per unit t; at the END of each period
[tex]r=365\cdot((\frac{2661.46}{2500})^{\frac{1}{365\cdot2.083}}-1)[/tex]r = 0.030041617
Then convert r to R a percentage
R = r * 100
R = 0.030041617 * 100
R = 3.00%/year
