Question

NEED HELP ASAP!!!

DeShawn invests $1,046 in a savings account with a fixed annual interest rate compounded 3 times per year. After 6 years, the balance reaches $1,780.74. What is the interest rate of the account?

Answer 1

9%

Explanation:

You are going to want to use a modified compound interest formula, as shown below. This version of the compound interest formula is what you use to solve for the interest rate.

`r = n[((A)/(P))^(1/nt)-1]`

r = interest rate (decimal)

n = numbers of times compounded (annually)

A = total amount

P = principal amount

t = time (years)

Now, lets plug in the values:

`r = 3[((1,780.74)/(1,046))^(1/(3)6)-1]`

`r = .09`

r = 9% interest rate