Question

Sal currently has an account balance of $2,835.48. He opened the account five years ago with a deposit of $2310.72. If the interest compounds twice a year, what is the interest rate on the account?

Answer 1

The formula is
A=p (1+r/k)^kt
A future value 2835.48
P present value 2310.72
R interest rate?
K compounded twice a year 2
T time 5 years
Solve the formula for R
R= [(A/p)^(1/kt)-1]×k
R=((2,835.48÷2,310.72)^(1÷10)−1)×2
R=0.0414×100
R=4.14%

Hope it helps!