document.write( "Question 1124736: A local bank is offering a zero-coupon certificate of deposit for​ $25,000. At​ maturity, three years from​ now, the investor will receive​ $32,000. What is the rate of return on this​ investment? \n" ); document.write( "
Algebra.Com's Answer #741059 by Theo(13342)\"\" \"About 
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f = p * (1 + r) ^ n\r
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\n" ); document.write( "\n" ); document.write( "f = 32 thousand
\n" ); document.write( "p = 25 thousand
\n" ); document.write( "n = 3 years
\n" ); document.write( "r is what you want to find.\r
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\n" ); document.write( "\n" ); document.write( "equation becomes 32 = 25 * (1 + r) ^ 3\r
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\n" ); document.write( "\n" ); document.write( "divide both sides of this equation by 25 to get 32 / 25 = (1 + r) ^ 3\r
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\n" ); document.write( "\n" ); document.write( "take the cube root of both sides of this equation to get (32 / 25) ^ (1/3) = 1 + r\r
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\n" ); document.write( "\n" ); document.write( "suvbtract 1 from both sides of this equation to get (32 / 25) ^ (1/3) - 1 = r\r
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\n" ); document.write( "\n" ); document.write( "solve for r to get r = .085767045.\r
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\n" ); document.write( "\n" ); document.write( "the annual interest rate is 8.5767045%.\r
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