Question

Amanda put $1500 in a savings account. After 5 years, she had $1833 in the account. What rate of interest did she earn? Use the formula A=Pe^rt, where A is the ending amount, p is the principle (initial amount), r is the interest rate, and t is time

Answer 1

4%, That is the correct answer on Apex

Answer 2

A=Pe^rt
where:
A=amount
P=principle
t=time
r=rate
Plugging our values in the equation and solving for r we obtain:
1833=1500e^(5r)
solving for r we get:
r=0.0401
Answer: r=0.0401