Answer:
r = ∛(B/1000) -1
Step-by-step explanation:
Solve for r by undoing the math operations that are done to it, in reverse order. The operations done to r are ...
- add 1
- raise the sum to the 3rd power
- multiply by 1000
To undo these operations, we start from the bottom of the list and work up.
B = 1000(1 +r)^3
B/1000 = (1 +r)^3 . . . . undo the multiplication: divide by 1000
∛(B/1000) = 1 +r . . . . raise both sides to the 1/3 power to eliminate the exponent of 3
∛(B/1000) -1 = r . . . . . subtract 1 to undo the addition of 1
The interest rate required to achieve a balance of B in 3 years is given by the formula ...
r = ∛(B/1000) -1
