Answer:
3%
Step-by-step explanation:
Interest rat is calculated by using the equation A = P(1 + r)^n
A is the amount after interest. Here, it is 1635.30
P is the principal, or base, amount. Here, it is 1422
r is the rate at which there is interest. It is what we need to find out.
n is the amount of years interest is calculated for. Here, it is 5
Now that we have everything, we calculate:
1635.30 = 1422(1 + r)^5
Now we have to get r on one side of the equation by itself:
Divide both sides by 1422:
1635.30/1422 = (1 + r)^5
5√(1655.30/1422) = 1 + r
5√(1.16406469) - 1 = r
Now r is on one side of the equation.
The 5th root of 1.16406469 is 1.03084987
1.03084987 - 1 = 0.0308, so it is 3%
The 5√ is the 5th root of the numbers
Or it's 2.835 percent I don't know
