Question

Samuel is going to invest $1,700 and leave it in an account for 16 years. Assuming the

interest is compounded daily, what interest rate, to the nearest tenth of a percent,
would be required in order for Samuel to end up with $3,100?

Answer 1

Answer: 3.8%

Explanation:

Answer 2

4%

Explanation:

Given data

principal= $1,700

time= 16 years

final amount= $3,100

Applying the compound interest formula we have

r = (A/P)^1/t - 1

substitute

r=3100/1700^1/16-1

r=1.82^0.0625-1

r=1.038-1

r=0.038

Hence the rate is 0.038*100

=3.8

=4%