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

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Answer:

We can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the ending amount, P is the principal (starting amount), r is the interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the time in years.

We know P = $5700, A = $6100, n = 1 (since the interest is compounded annually), and t = 12. We can solve for r:

$6100 = $5700(1 + r/1)^(1*12)

$6100/$5700 = (1 + r)^12

1.0702 = (1 + r)^12

log(1.0702) = log[(1 + r)^12]

0.0291 = 12log(1 + r)

0.00243 = log(1 + r)

10^(0.00243) = 1 + r

r = 0.0059 or 0.59%

Therefore, the interest rate of the savings account is 0.59%.

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