Question

jeanne's bank account earns interest annually. The equation below shows her starting balance of $400 and her balance at the end of five years, $535,29. At what rate r did Jeanne earn interest?

Answer 1

6%

Explanation:

Perhaps "the equation below" looks like this:

535.29 = 400(1 +r)^5

Solving for r, we have ...

535.29/400 = (1 +r)^5 . . . . . . divide by 4200

1.338225^(1/5) = 1 +r . . . . . . . take the 5th root

1.0599999085 -1 = r ≈ 0.0600 . . . . . subtract 1

Jeanne's bank account earned interest at an annual rate of 6%.