Question

An account invested in a money market fund grew from $73,377.34 to $73,677,48 in a month What was the interest rate to the nearest tenth? What was the interest rate?

Answer 1

Answer:

The rate is 4.9%.

Step-by-step explanation:

The compound interest formula is :

$A=p(1+\frac{r}{n})^{nt}$

A = 73677.48

p = 73377.34

r = ?

n = 12

t = 1/12

Putting the values in formula we get;

$73677.48=73377.34(1+\frac{r}{12})^{12*1/12}$

=> $73677.48=73377.34(1+\frac{r}{12})^{1}$

=> $\frac{73677.48}{73377.34} =(1+\frac{r}{12})$

=> $1.004090=(\frac{12+r}{12})$

=> $12.04908=12+r$

=> $r = 12.04908-12$

r = 0.04908

or r = 4.9%

Therefore, the interest rate is 4.9%.