Question

Use the compound interest formula A = P(1 + r) and the given information to solve for r.

A = $3,000,000, P = $20,000, t = 40

Answer 1

Explanation:

A=P(1+R)

A/P=1+R

(A/P)-1=r

(3000000/20000)-1=r

149=r

Answer 2

`\textbf{Answer:}`

`r\approx 0.13345`

`\textbf{Step-by-step explanation:}`

`\text{Your formula is missing something: t}`

`\text{It should read }A=P(1+r)^t`
`\text{Where A is the final amount, P is the principal, r is rate in decimal, and t is time in years}`

`\text{Given that A=3000000, P=20000, and t=40, we can subsitute and solve}`

`A=P(1+r)^t`

`\text{subsitute}`

`3000000=20000(1+r)^(40)`
`\text{ now solve for r}`

`\text{Divide both sides by 20000}`

`150=(1+r)^(40)`

`\text{Take the 40th root of both sides }(\sqrt[40]{})`

`\sqrt[40]{150}=1+r`

`\text{subtract 1 from both sides}`

`\sqrt[40]{150}-1=r`
`\text{ or in approximate form, }`[/tex]r\approx 0.13345[/tex]