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Answer:
11.196%
Step-by-step explanation:
Given:
Buying cost of the investment or the principle amount = $1000
Time, n = 5 years
Selling cost of investment or amount received = $1700
Now,
the formula for compound interest is given as:
here, r is the rate of interest
on substituting the respective values, we get
or
(1 + r)⁵ = 1.7
or
1 + r = 1.11196
or
r = 0.11196
or
r = 0.11196 × 100% = 11.196%