document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=996410>Question 996410</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Determine the rate of interest for a sum that becomes 343/216 times itself in 3 years interest compounded annually. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #614897 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=614897\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> f = p * (1+r)^n\r<BR>\n" );
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document.write( "if you divide both sides of this equation by p, you will get:\r<BR>\n" );
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document.write( "f/p = (1+r)^n\r<BR>\n" );
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document.write( "f = future value<BR>\n" );
document.write( "p = present value<BR>\n" );
document.write( "r = annual interest rate<BR>\n" );
document.write( "n = number of years\r<BR>\n" );
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document.write( "in your problem:\r<BR>\n" );
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document.write( "f = 343<BR>\n" );
document.write( "p = 216<BR>\n" );
document.write( "n = 3\r<BR>\n" );
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document.write( "f/p = (1+r)^n becomes 343/216 = (1+r)^3\r<BR>\n" );
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document.write( "take the cube root of both sides of this equation to get:\r<BR>\n" );
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document.write( "(343/216)^(1/3) = 1+r\r<BR>\n" );
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document.write( "subtract 1 from both sides of this equation to get:\r<BR>\n" );
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document.write( "(343/216)^(1/3) - 1 = r\r<BR>\n" );
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document.write( "solve for r to get:\r<BR>\n" );
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document.write( "r = .1666666667\r<BR>\n" );
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document.write( "343/216 = (1+r)^n becomes:\r<BR>\n" );
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document.write( "343/216 = (1.1666666667)^3\r<BR>\n" );
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document.write( "simplify to get:\r<BR>\n" );
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document.write( "1.587962965 = 1.587962963\r<BR>\n" );
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document.write( "this confirms the solution is correct.\r<BR>\n" );
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document.write( "annual interest rate is 16 and 2/3 %.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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