Question

Emily plans to put her graduation money into an account and leave it there for 4 years while she goes to college. She receives $750 in graduation money that she puts into an account that earned $127.50 in interest. What was the interest rate that the bank provided

Answer 1

887.40

Explanation:

amount = principal(1i)^n

i = .0425/2 = .02125 , n = 8 , principal = 750

amount = 750(1.02125)^8 = 887.40