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3 years ago

9

If $4200 is invested into a savings account for which interest is compounded semiannually, and if the $4200 turns into $4900 in

4 years, what is the interest rate of the savings?
A. 3.89%
B. 7.86%
C. 16.02%
D. 1.29%

2 answers:

serg [7]3 years ago

6 0

x = interest rate

solve for x

4900 = 4200(1+x/2)^8

x = 0.0389 = 3.89%

DochEvi [55]3 years ago

5 0

Hello,

4900 = 4200(1+x/2)^8

x = 0.0389 = 3.89%

Hope this helps

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