528,059 views
31 votes
31 votes
In 1 year a sum of money at compound interest amounted to $424 and in 2 years amounted to 449.44 (payable yearly) Determine the rate percent

User ARich
by
2.9k points

1 Answer

5 votes
5 votes

Answer:

6%

Explanation:

The compound interest growth factor is ...

(second year value)/(first year value) =

$449.44/$424 = 1.06 = 1 + growth rate

Then the growth rate is 1.06 -1 = 0.06 = 6%.

The compound interest rate is 6%.

__

The initial sum invested is $400.

User Banghua Zhao
by
2.9k points