Question

"Emily invests $2,267 in a savings account with a fixed annual interest rate compounded 2 times per year. After 7 years, the balance reaches $4,198.36. What is the interest rate of the account?"

Answer 1

The fisrt step is to set the formula7

`(((A)/(P))^{(1)/(nt)}-1)\cdot n=r`

Then we change it to find the value of the interest rate r, and finally we replace

`\begin{gathered} (((4198.36)/(2267))^{(1)/(14)}-1)\cdot2=r \\ r=0.09=9.00\% \end{gathered}`