Question

Samuel is going to invest $4,900 and leave it in an account for 14 years. Assuming the

Answer 1

Answer:

0.054

Step-by-step explanation:

Using the compound formula A=P(1+r/n)^nt we can plug in the numbers we know. A being the total, P the initial amount, n is the number of compounds in a year, and t is the number of years passing. So 10300= 4900(1+ r/2)^2(14). We have to isolate r in order to find the rate. We can divide both sides by 4900, giving us 103/49= (1+ r/2)^28. Then we take the 28 square root from both sides. 1.02689= 1 + r/2. Subtract 1 from both sides. 0.02689= r/2. Then multiply both sides by two. r= 0.054.