Answer:
The required interest rate would be of 3.4% a year.
Step-by-step explanation:
The amount of money earned in compound interest, after t years, is given by:
In which P(0) is the initial investment and r is the interest rate, as a decimal.
Peyton is going to invest $440 and leave it in an account for 5 years.
This means that
So
What interest rate, to the nearest tenth of a percent, would be required in order for Peyton to end up with $520?
This is r for which P(t) = 520. So
Then
The required interest rate would be of 3.4% a year.