SOLUTION: Hi,my name is Maria.I have tried to follow the book and still do not understand how they come up with the answer.Question is $50 deposited 100years ago has the value of $1600.today
Algebra.Com
Question 734180: Hi,my name is Maria.I have tried to follow the book and still do not understand how they come up with the answer.Question is $50 deposited 100years ago has the value of $1600.today. What was the interest rate? I tried to follow the formula of (I+R)^n*amount.I put in different percentages.ex: (1=.06)^100*50=16965.Am I anywhere close to an answer? Please help!!
Thanks Maria
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
Question is $50 deposited 100years ago has the value of $1600.today. What was the interest rate? I tried to follow the formula of (I+R)^n*amount.
"Simple compound" interest formula:
A = P(1 + r)^n
where
A is amount ($) after n years
P is principal (amount started with)
r is interest rate
n is time (years)
.
Plugging in what was given:
1600 = 50(1 + r)^100
now we solve for r:
1600 = 50(1 + r)^100
1600/50 = (1 + r)^100
32 = (1 + r)^100
32^(1/100) = 1 + r
1.0353 - 1 = r
.0353 = r
or
3.5% = r
RELATED QUESTIONS
Dimensions of a Quarter. The circumference of a quarter is 7.85cm. What is the diameter?... (answered by stanbon)
hi, my name is nia. i am having a problem with equations. i think it's called equation... (answered by Alan3354)
How do I come up with the answer to this problem 2 5/2 - 2 3/2. I have tried everything... (answered by fcabanski)
The sums of the digits of a two digit number is 14. If 4 is added to the number, the... (answered by ankor@dixie-net.com,josmiceli)
It takes Maria twice as long to complete a certain type of research project as it takes... (answered by oberobic)
Can you help me with this problem? I've tried working it myself and I'm not coming up... (answered by mike toye)
Hi, My name is Jakarria. I'm not to good on word problems and I need help solving this... (answered by emargo19)
If the square of 2 less than an integer is 16, find the number(s). I simply do not... (answered by edjones)
The problem is (5 1/2)/ (4 3/4)
This is for an online algebra class. I tried to follow... (answered by Earlsdon)