Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Discover reliable solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

At what annual interest rate would $500 grow $1,948.00 in 12 years ? write your answer to the nearest whole number.

Sagot :

Okay, here we have this:

Considering the provided information, we are going to replace in the Compound Interest Formula, so we obtain the following:

[tex]\begin{gathered} r=n((\frac{A}{P})^{\frac{1}{nt}}-1) \\ r=1((\frac{1948}{500})^{\frac{1}{1\cdot12}}-1) \\ r=1((\frac{1948}{500})^{\frac{1}{12}}-1) \\ r=\frac{1948^{\frac{1}{12}}}{500^{\frac{1}{12}}}^{}-1 \\ r\approx12\text{ percent} \end{gathered}[/tex]

Finally we obtain that the annual interest rate is approximately 12%.

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.