Question

Amanda put $1500 in her savings account. After five years she had $1833 in the account. What rate of interest did she earned use the formula a equals PE to the power of rt and t is time and

Answer 1

Answer: 4.01% interest rate

This value is approximate. It is rounded to the nearest hundredth of a percent.

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Work Shown:

A = P*e^(r*t)

1833 = 1500*e^(r*5)

1833/1500 = e^(5r)

1.222 = e^(5r)

e^(5r) = 1.222

5r = Ln(1.222)

5r = 0.2004888607494

r = 0.2004888607494/5

r = 0.04009777214989

r = 0.0401

r = 4.01%