A=P(1+I)^3
You mean A=P(1+I)^t
t just happens to be 3 years here
49130 = 40960 (1+i)^3
1.19946 = (1+i)^3
take cube root
1 + i = 1.0625
or i = 6.25 %
when P dollars is invested at interest rate (I), compounded annually, for (t) years, the investment grows to (A) dollars, where A=P(1+I)^3. Find the interest rate if $40,960 grows to $49,130 in 3 yrs.
1 answer
1 answer