Question

Find the required annual interest rate, to the nearest tenth of a percent, for $955 to grow to $1514 if interest is compounded monthly for 3 years.
A. 30.9%
B. 10.3%
C. 1.3%
D. 15.5%

Answer 1

Answer:

D

Step-by-step explanation:

$A=P(1+\dfrac{r}{n})^{nt}$

where A is the final amount of money, P is the initial amount of money input, r is the interest rate, n is the amount of times compounded per year, and t is the time in years.

$1514=955(1+\dfrac{r}{12})^{(12)(3)}$

$1.585=(1+\dfrac{r}{12})^{36}$

$1.0128762=1+\dfrac{r}{12} \\\\\\0.0128762=\dfrac{r}{12} \\\\\\r\approx 0.155=15.5\%$

Hope this helps!

Answer 2

the answer would be D because of the way it is set up in the problem on the screen it helped a lot of other people