SOLUTION: Please help me solve this problem P=5,500 T=3 years I=1,200 What is the interest rate

Question 883555: Please help me solve this problem
P=5,500
T=3 years
I=1,200
What is the interest rate
Answer by KMST(5328) (Show Source): You can put this solution on YOUR website!
How is the interest compounded?

YEARLY COMPOUNDING:
If you deposit $5,500 and interest is 6.8% compounded yearly,
you would have $6,700.03 after 3 years.
Each year, interest would be added amounting to 6.8% of the balance at the start of the year.
Starting with $ , with a rate of ,
you would get added as interest at the end of the year,
for a total new balance of .
The next year, the process repeats, but now the whole $ is earning interest.
Again, you end the year with times the starting balance,
so you end the second year with .
The third year you end up with .
In general, after 3 years, you have earned a total of $ interest, and
, so
, so in this case
---> (rounded).
So
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