Question

Lydia is going to invest $210 and leave it in an account for 17 years. Assuming the interest is compounded daily, what interest rate, to the nearest hundredth of a percent, would be required in order for Lydia to end up with $330?

Answer 1

2.66

Explanation:

Answer 2

To the nearest hundredth of a percentage= 0.03

Explanation:

Formula for compound interest

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

A= $330

P= $210

n = 356

t= 17

r = ?

330 = 210(1+r/356)^(356*17)

330 = 210(1+r/356)^(6052)

330/210 = (1+r/356)^6052

(6052√(330/210) - 1 )356 = r

(1.000074686-1)356= r

0.02658 = r

To the nearest hundredth of a percentage= 0.03