castel invests $7178 in a savings account with monthly compounding. after 7 years, the balance reaches $12,543.00. What is the i

Question

3 years ago

8

nterest rate of the account?

2 answers:

liq [111] · Answer 1 · 2021-11-05T10:45:48+03:00

liq [111]3 years ago

7 0

Answer:

r = 129.1 %

Step-by-step explanation:

Using the compounding formula:

A = P (1 + r/t)^nt

$12, 543 = $7178 (1 + r/12)^12(7)

-7178

$5365 = (1 + r/12)^84

$\sqrt[84]{5365}$ = $\sqrt[84]{(1 +\frac{r}{12})^{84}}$

1.107642572 = 1 + r/12

(0.108 = r/12) (12)

r = 1.2917 = 129.1 %

Maurinko [17] · Answer 2 · 2021-11-05T09:30:11+03:00

6 0

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