Question

olve for r

2=2500(1+ r / 12)^24

A) .05

B) .11

C) .26

D) .31

Answer 1

$2=2500(1+ \frac{r}{12} )^{24} \\ \frac{2}{2500} =(1+ \frac{r}{12} )^{24} \\ \sqrt[24]{0.0008} =1+ \frac{r}{12} \\ 0.7430-1= \frac{r}{12} \\ r=12(-0.2570) \\ r=-3.085$