Respuesta :
Answer: Yes, the approximate annual rate is 1.7%
Step-by-step explanation:
Here, the principal amount, P = $ 83,
Time, t = 42 years
Amount after 42 years, A = $ 166
Let the annual rate of interest = r %,
By the compound interest formula,
We can write,
[tex]P(1+\frac{r}{100})^t = A[/tex]
[tex]83(1+0.01r)^{42}=166[/tex]
[tex](1+0.01r)^{42}=2[/tex]
[tex]1+0.01r=1.01664043939[/tex]
[tex]0.01r=0.01664043939[/tex]
[tex]r=1.664043939\%\approx 1.7\%[/tex]
⇒ The annual rate of interest = 1.7% ( Approx )
