Question

When Katie was born her mother invested $5000 in an account for her college savings. We can use the formula V = 5000(1 + r)t where r represents the interest rate and t represents the time in years. If Katie has approximately $11,042 in her account after 18 years, what was the interest rate for the account?

Answer 1

The solution is 4.5%. To calculate the amount for 4.5 percent, plug .045 in the formula V = 5000(1 + r)18. The result is approximately $11,042.

Explanation:

Answer 2

The answer should be around 4.5%.