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Mr. Chan places $4000 in a bank as a fixed deposit for 2 years. The bank offers an interest compounded yearly. At the end of 2 years, he receives a total of $4243.60. Find the interest rate.

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Answer:

Explanation:

Mr. Chan originally placed 4,000 in the bank as a fixed deposit for 2 years.

Each years the bank added a certain amount of interest.

At the end of the 2 years he gained 243 dollars and 60 cents just from interest.

How to solve:

Simply take away the 4 in the amount of money

Leaving: $243.60

( 2 years )

Now divide 243.60 by 1/2

which is 121.8

Mr.Chan got 121.8 worth of interest a year

$10.5 a month

$2.3 a week

6 cents a day

All in 2 years.

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