Question

"Emily invests $2,267 in a savings account with a fixed annual interest rate compounded 2 times per year. After 7 years, the balance reaches $4,198.36. What is the interest rate of the account?"

Answer 1

The fisrt step is to set the formula7

$((\frac{A}{P})^{\frac{1}{nt}}-1)\cdot n=r$

Then we change it to find the value of the interest rate r, and finally we replace

$\begin{gathered} ((\frac{4198.36}{2267})^{\frac{1}{14}}-1)\cdot2=r \\ r=0.09=9.00\% \end{gathered}$