Question

Carla wanted to buy a new guitar. Carla deposited $200.00 into a new savings account that

earns interest compounded continuously. After 1 year, she withdrew the entire balance of
$231.00 and bought the guitar. What was the interest rate on the account?
Round your answer to the nearest tenth of a percent.

Answer 1

%15.5

Explanation:

200+(200x)=231

*x is the interest rate

so let's break down this question by going backwards. we can subract 200 from both sides since we cann easily get rid of +200. so you would get:

200x= 31

Now divide both sides by 200 to eliminate anything else, just to keep x alone.

x= 0.155

and a percent it would be %15.5

and to check:

200+(200*0.155)= 231