Question

Adam put $100 in a savings account. After 10 years, he had $1649 in the account. What rate of interest did he earn? Use the formula A = Pert, where A is the ending amount, P is the principal (initial amount), r is the interest rate, and t is time.
A.20%
B.5%
C.28%
D.3%

Answer 1

Answer:

Step-by-step explanation: C. 28%

$A = Pe^{rt}$

$1649 = 100 \cdot e^{10r}\\16.49 = e^{10r}\\\ln{16.49} = 10r\\r = \frac{\ln{16.49}}{10} = 0.28$