Question

Keegan deposited $700 into his bank account. After one year, his bank account balance was $761.60. What interest rate did he earn?

Answer 1

Answer:

8.8%

Step-by-step explanation:

We first divide the new amount by the original and close it with brackets.

Our one year will be shown as 1/1 as an indices

(761.60/700)^1/1

= 1.088

We then convert it to 0.088 and times it by 100.

0.088×100= 8.8% Compound interest rate.

This is correct as:

700×1.088= 761.6

Have a nice day! :)