Question

One year ago, you invested $3,250.00. Today, it is worth $4,000.00. What rate of interest did you earn

Answer 1

Answer:

23.08%

Explanation:

Future value =Present value*(1+r)^n

$4,000 = $3,250*(1+R)^1

$4,000 = $3,250*(1+R)

1+R = $4,000/$3,250

1+R = 1.230769

R = 1.230769 - 1

R = 0.230769

R = 23.08%