Gavin owes the bank $63,000. After 10 years, Gavin owes $93,255. Gavin knows the debt grows with an interest rate that compounds

Question

3 years ago

6

once every year. What is the rate of interest (as a percentage)?

1 answer:

geniusboy [140] · Answer 1 · 2022-02-28T19:25:24+03:00

Answer:

1,616.60

we know that

The compound interest formula is equal to

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

substitute in the formula above

Step-by-step explanation: