Question

Merlin invested $48,750 into an interest-bearing account 7 years ago, and withdrew all of the money to close it. The

account balance at the time of his withdrawal was $49,975. In two or more sentences explain why a negative
number would or wouldn't be reasonable when solving for the rate of the investment.

Answer 1

Interset always positive ,if a bank don't give interest even though interset remains zero doesn't become negative

Let's find interest here to proof

• Principal=P=48750
• Annual=A=49975

Interest:-

• A-P=49975-48750=1225