araic30
Answered

URGENT!

7. At what rate was an investment made that obtains $359.80 in interest compounded annually on $668 over five years?


[compound interest rate]

Answer :

Answer:

Rate = 13.173% per year

Step-by-step explanation:

**Not 100% sure about this answer, but I think it's right.**

Calculation Steps:

Solving for rate r as a decimal

r = n[(A/P)^1/^nt - 1]

r = 1 × [(668.00/359.80)^1/^(1)^(5) - 1]

r = 0.131731

Then convert r to R as a percentage

R = r * 100

R = 0.131731 * 100

R = 13.173%/year

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