Question

3)

Ross wants to know what interest rate he needs to make his $800 grow to
$1000 in 4 years.

Answer 1

Why?:

The interest formula is A = P(1+r/m)^mt

A is the Amount, P is principal (initial investment), R is rate, M is times per year (not used) and T is time.

So if we want 1000 = 800(1+r)^4, we need to find R. In this case, R is about 5 percent. (I'm not super confident, so see if you have other answers)