Question

Find the required annual interest rate, to the nearest tenth of a percent, for $955 to grow to $1514 if interest is compounded monthly for 3 years.

A. 30.9%
B. 10.3%
C. 1.3%
D. 15.5%

Answer 1

the answer would be D because of the way it is set up in the problem on the screen it helped a lot of other people

Answer 2

D

Explanation:

`A=P(1+(r)/(n))^(nt)`

where A is the final amount of money, P is the initial amount of money input, r is the interest rate, n is the amount of times compounded per year, and t is the time in years.

`1514=955(1+(r)/(12))^((12)(3))`

`1.585=(1+(r)/(12))^(36)`

`1.0128762=1+(r)/(12) \\\\\\0.0128762=(r)/(12) \\\\\\r\approx 0.155=15.5\%`

Hope this helps!