Problema Solution
If P dollars are deposited in an account that pays an annual rate of interest r, then in n years, the amount of money A = P(1 + r)n. A savings account was opened on January 3, 1993, with a deposit of $9,513 and closed on January 2, 1995, with an ending balance of $11,955. Find the rate of interest.
r = __%
Answer provided by our tutors
r = 12.1__%
Solution:
11955 = 9513(1 + r)^2
r = 0.121 = 12.1%
So r = 12.1%