Answer:
R = 3.057% per year
Step-by-step explanation:
This is a compound interest question
From the question, we have the following information
P = Principal = $1,725.95.
A = Amount after 25 years = $3,703.05
T = Time = 25 years
n = Compounding frequency = compounded monthly = 12
r = interest rate = ???
The formula to calculate the interest rate in a compound interest question =
r = n[(A/P)^1/nt - 1]
r = 12[($3,703.05/$1,725.95)^1/12× 25 - 1]
r = 3.057%
Therefore, the interest rate on the account is 3.057%
