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The amount of money in a bank account that is compounded yearly can be represented by the function A(y) = P(1 + r)y, where P is the amount initially deposited, r is the annual interest rate expressed as a decimal, and y is the number of years that have passed since the initial deposit. $2,700 was deposited 14 years ago into a bank account that is compounded yearly, and no additional deposits or withdrawals have been made. If the amount of money now in the bank account is $7,930.42, what is the annual interest rate?

2 Answers

5 votes

Answer: 8%


Explanation:


User Deumaudit
by
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4 votes
R=(7,930.42÷2,700)^(1÷14))-1
R=0.08*100=8%
User Dpham
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