Samuel is going to invest $4,900 and leave it in an account for 14 years. Assuming the
interest is compounded monthly, what interest rate, to the nearest tenth of a percent,
would be required in order for Samuel to end up with $10,300?
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Answer:
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Using the compound formula A=P(1+r/n)^nt we can plug in the numbers we know. A being the total, P the initial amount, n is the number of compounds in a year, and t is the number of years passing. So 10300= 4900(1+ r/12)^12(14). We have to isolate r in order to find the rate. We can divide both sides by 4900, giving us 103/49= (1+ r/12)^168. Then we take the 168 square root from both sides. 1.00443… = 1 + r/12. Subtract 1 from both sides. 0.00443… = r/12. Then multiply both sides by twelve . r= 0.053

Samuel is going to invest $4,900 and leave it in an account for 14 years. Assuming the interest is compounded monthly, what interest rate, to the nearest tenth of a percent, would be required in order for Samuel to end up with $10,300? - Answer: Submit Answer

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Samuel is going to invest $4,900 and leave it in an account for 14 years. Assuming the
interest is compounded monthly, what interest rate, to the nearest tenth of a percent,
would be required in order for Samuel to end up with $10,300?
-
Answer:
Submit Answer