crystal631677
Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Mr. Shahril invested RM5000 for a donation fund for 5 years. The fund paid a compound interest every year. At the end of the 5th year, he received an amount of RM5800. Find the rate of interest. ​

Sagot :

Izzy274

Answer:

3%

Step-by-step explanation:

He starts off with 5000 and ends up with 5800. To summarise:

Year 0: 5000

Year 1: ?

Year 2: ?

Year 3: ?

Year 4: ?

Year 5: 5800

As it is compound interest, we know that the value at the end of the past year is being multiplied by a certain number each year, which is the interest rate.

Therefore, we are multiplying by 'x' each year.

So: 5000 x [tex]x\\[/tex] x [tex]x\\[/tex] x [tex]x\\[/tex] x [tex]x\\[/tex] x [tex]x\\[/tex] = 5800

overall: 5000[tex]x^5[/tex] = 5800

we can now solve this equation:

divide by 5000: [tex]x^5[/tex]  = [tex]\frac{29}{25}[/tex]

5th root: x = 1.03012....

Therefore the value is being multiplied by 1.03 each year, which is an increase of 3%

I hope this helps, feel free to ask if you have any questions :)

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.