Respuesta :
Answer: D) 2%
Step-by-step explanation:
Firstly, we would determine the initial amount invested by applying the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = ?
r = 4% = 4/100 = 0.04
A = $4499.46
n = 1 because it was compounded once in a year.
t = 3 years
Therefore,
4499.46 = P(1 + 0.04/1)^1 × 3
4499.46 = P(1.04)^3
4499.46 = 1.125P
P = 4499.46/1.125
P = $3999.52
Therefore, when A = $4244.83, then
4244.83 = 3999.52(1 + r)^3
4244.83/3999.52 = (1 + r)^3
1.061 = (1 + r)^3
Taking cube root of both sides, it becomes
1.02 = 1 + r
r = 1.02 - 1 = 0.02
r = 0.02 × 100 = 2%
Answer:
The interest rate to the nearest whole-number percent is 6%
Step-by-step explanation:
The formula for finding the compound interest is expressed as:
Given the following parameters
A = 3600
P = 2000
t = 10 years
Substitute the given parameters to have:
1.061 = 1+r
r = 0.061
r = 6.1%
so the result is 6%
