If $350 grows to $500 in 3 years, what is the anual interest rate assuming the interest is compounded anually?
Please help with this question...Thanks!! and show me calculations so i can understand.
Please help with this question...Thanks!! and show me calculations so i can understand.
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... An = Ao ( 1 + r )^(n)
or 500 = 350 ( 1 + r )^(3)
or r = -1 + ( 500/350 )^(1/3)
or r ~ 0.12624788044 ~ 12.62 %
or 500 = 350 ( 1 + r )^(3)
or r = -1 + ( 500/350 )^(1/3)
or r ~ 0.12624788044 ~ 12.62 %
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Basic Formula is I=P r t
if you're looking for r then the formula become r = I / (P x t)
First we have to find I which is the interest that you receive 500-350=150
Now we plugin
r = 150 / [(350) x (36/12)]
r = (150) x (12) / (350) x 12)
r = 3 x 1 / 7 x 3 (how? by dividing the biggest number that both top and bottom can be divided by)
r = 3/21 which is 0.14
now 0.14 x 100% = 14% So the interest rate annualy is 14%
if you're looking for r then the formula become r = I / (P x t)
First we have to find I which is the interest that you receive 500-350=150
Now we plugin
r = 150 / [(350) x (36/12)]
r = (150) x (12) / (350) x 12)
r = 3 x 1 / 7 x 3 (how? by dividing the biggest number that both top and bottom can be divided by)
r = 3/21 which is 0.14
now 0.14 x 100% = 14% So the interest rate annualy is 14%
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use the formula: A=P(1+r/n)^nt where A is the final amount, P is the original amount, r is the interest rate, n is the number of times per year that the interest is calculated (in this case 1), and t is the number of years. you figure it out from there you lazy bum