SOLUTION: Alexander deposited some money into an account with a
fixed rate of interest, compounded annually. The growth
of the investment is shown in the table.
What is the annual rate of
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-> SOLUTION: Alexander deposited some money into an account with a
fixed rate of interest, compounded annually. The growth
of the investment is shown in the table.
What is the annual rate of
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Question 1113054: Alexander deposited some money into an account with a
fixed rate of interest, compounded annually. The growth
of the investment is shown in the table.
What is the annual rate of interest, to the nearest
percent? What principal did Alexander invest?
TABLE:
End of Value of
Year Investment ($)
You can put this solution on YOUR website! Alexander deposited some money into an account with a
fixed rate of interest, compounded annually. The growth
of the investment is shown in the table.
What is the annual rate of interest, to the nearest
percent? What principal did Alexander invest?
TABLE:
End of Value of
Year Investment ($)
1 517.50
2 535.61
3 554.36
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Gain in one year:: 535.61-517.50 = 18.11
Percent gain:: 18.11/517.50 = 0.035 = 3.5%
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You should check the gain from year 2 to year 3
Then divide that gain by 535.61 to see if
the percent gain is consistent.
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To find the initial investment divide 517.50 by 1.035
Cheers,
Stan H.
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