Question

Find the interest rate r given I=$ 56,P=450 and t = 6 years , round your answer to the nearest

Answer 1

0.163

Explanation:

P = I (1 + r)ᵗ

450 = 56 (1 + r)⁶

8.036 = (1 + r)⁶

log₆ 8.036 = 1 + r

log 8.036 / log 6 = 1 + r

1.163 = 1 + r

r = 0.163