contestada

Question
George invested $4400 in an account with annually compounded interest. After 5 years, he had $5790 in the account. What
was the interest rate of the account? Round your answer to one decimal place. Do not write the percent sign,​

Respuesta :

taniaorozco
compounded annually:

A = P(1 + r)^t

A = accumulated amount = $5790
P = original amount invested = $4400
r = interest rate (in decimal form) = ? what it is asking for
t = time in years = 5 years

$5,790 = $4,400(1 + r)^5
r = 5.644% or 0.05644

Answer:

The rate of interest was approx 5.64%.

Step-by-step explanation:

The compound interest formula is :

[tex]A=p(1+\frac{r}{n} )^{nt}[/tex]

Here p = 4400

r = ?

n = 1

t = 5

A = 5790

Now putting the values in formula we get;

[tex]5790=4400(1+\frac{r}{1} )^{5}[/tex]

=> [tex]5790=4400(1+r )^{5}[/tex]

=> [tex]\frac{5790}{4400} =(1+r )^{5}[/tex]

=> [tex]1.316=(1+r )^{5}[/tex]

=> [tex]1+r=\sqrt[5]{1.316}[/tex]

r = 0.0564

In percentage it is [tex]0.0564\times100[/tex] = 5.64%

Hence, the rate of interest was approx 5.64%.

Otras preguntas