Find the annual interest rate if i=$562.50, p=$1500, t=5 years
2 answers:
Answer:
The annual interest rate is 7.5%
Step-by-step explanation:
Given : i=$562.50, p=$1500, t=5 years
We have to calculate the annual interest rate.
We know
Interest = Principal × rate × time
Given : Interest = $562.50
Principal = $1500
Time = 5 years.
Substitute, we get,
562.50 = 1500 × rate × 5
⇒
Thus, rate = 0.075 = 0.075 × 100 = 7.5%
Thus, the annual interest rate is 7.5%
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Answer:
The value of the bond when Tyler's mom purchased it was $150
Step-by-step explanation:
we know that
In this problem we have a exponential function of the form
where
a is the initial value (y-intercept)
b is the base
r is the rate
b=(1+r)
In this problem
r=4%=4/100=0.04
b=1+0.04=1.04
substitute
where
x is the number of years since the savings bond was purchased
f(x) is the value of the savings bond
For x=1
f(x)=$156
substitute
Solve for a
therefore
The value of the bond when Tyler's mom purchased it was $150