so far, so good. Now you have
(1+r)^2 = 3910/3500 = 1.11714
Now just take the √ and subtract 1.
Then make that into a % rate.
Suppose a deposit of $3,500 in a savings account that paid an annual interest rate r (compounded yearly) is worth $3,910 after 2 years.
Using the formula A=P(1+r)^t, we have 3,910=3,500(1+r) ^2Solve for r to find the annual interest rate (to the nearest tenth).
The annual interest rate, r is _____________%
1 answer
1 answer