Question

Adam put $100 in a savings account. After 10 years, he had $1649 in the account. What rate of interest did he earn? Use the formula A = Pert, where A is the ending amount, P is the principal (initial amount), r is the interest rate, and t is time.

A.20%
B.5%
C.28%
D.3%

Answer 1

Step-by-step explanation: C. 28%

`A = Pe^(rt)`

`1649 = 100 \cdot e^(10r)\\16.49 = e^(10r)\\ln(16.49) = 10r\\r = (ln(16.49))/(10) = 0.28\\`