Question

please help ASAP!!!!!

Answer 1

Solution

For this case we can begin dividing both sides by 3500 and we got:

$\frac{3992}{3500}=(1+r)^2$

then we can take square root in both sides and we got:

$\sqrt[]{\frac{3992}{3500}}=1+r$

And finally we can subtract 1 in both sides and we got:

$r=\sqrt[]{\frac{3992}{3500}}-1=0.06797$

and if we multiply by 100 we got:

r= 6.797 and rounded the answer would be:

6.8%