Question

if $5700 is invested in a savings account which interest is compounded annually and if the 5700% turns into $6100 in 12 years, what is the interest rate of the savings account??

Answer 1

Answer:.57% (apex)

Explanation:

Answer 2

r=0.57%

Explanation:

if $5700 is invested in a savings account which interest is compounded annually

$5700 turns into $6100 in 12 years

Compound interest formula is

`A= P (1+r)^t`

P is the principal

r is the rate of interest

t is the time period

A is the amount in account after t years

P= 5700, A= 6100, t=12

`6100= 5700 (1+r)^12`

divide by 5700 on both sides

`(61)/(57) =(1+r)^(12)`

take 12th root on both sides

`\sqrt[12]{(67)/(51)} =1+r`

now subtract 1 on both sides

`\sqrt[12]{(67)/(51)}-1 =r`

r=0.00567

to get interest rate in percentage we multiply by 100

r=0.00567 * 100= 0.57%