Question

Chelsea deposited $5000 in an investment account, and after 10 years, the investment was worth $9000. What is the monthly growth rate that Chelsea's account is earning?

a) 1%
b) 0.2%
c) 2%
d) 0.02%

Answer 1

The monthly growth rate, we can use the formula: Growth rate = (Final value / Initial value)^(1/n) - 1. In this case, the growth rate is approximately 7.4%. monthly growth rate, we can use the formula: Growth rate = (Final value / Initial value)^(1/n) - 1 In this case, the final value is $9000 and the initial value is $5000.

Step-by-step explanation:

To calculate the monthly growth rate, we can use the formula: Growth rate = (Final value / Initial value)^(1/n) - 1 In this case, the final value is $9000 and the initial value is $5000. The time period is 10 years, so n = 10. Plugging in the values, we get: Growth rate = (9000 / 5000)^(1/10) - 1, Using a calculator, the growth rate is approximately 0.074 or 7.4%. Therefore, the correct monthly growth rate that Chelsea's account is earning is 7.4%.

The monthly growth rate, we can use the formula: Growth rate = (Final value / Initial value)^(1/n) - 1. In this case, the growth rate is approximately 7.4%. monthly growth rate, we can use the formula: Growth rate = (Final value / Initial value)^(1/n) - 1 In this case, the final value is $9000 and the initial value is $5000.