Answer: 6%
Okay, so this is how we are going to find the Interest rate (Work):
156/5=31.2
31.2 Dollars every year
31.2/520=.06
.06x100= 6% interest rate every year
I hope this helps, Have a great rest of your day. :)
You have to use the distributive property for the numerator on both equations.
Y = 500(1 + r)^x; where r is the rate and x is the number of years.
500(1 + r)^2 = 551.25
(1 + r)^2 = 551.25/500 = 1.1025
1 + r = sqrt(1.1025) = 1.05
Therefore, the equation that represents y, the value of the item after x years is
y = 500(1.05)^x
4.0
is going to be your answer
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