Question

Find the annual rate of interest.

Answer 1

Answer:

5.503%

Step-by-step explanation:

Assuming that the interest earned is of compounding nature(annual compounding):

$A=P(1+i)^t$ #where t=time, A=Total earned, P=Principal.

#We substitute our known values in the equation to get:

$11349=7800(1+I)^7\\\\1.455=(1+i)^7\\\\(1+i)=1.455^{\frac{1}{7}}=1.05503\\\\i=1.05503-1\\\\i=0.05503$

Hence the annual rate of interest is 5.503%