SOLUTION: What interest rate is equivalent to an 11% discount rate in discounting amount for 3 years.

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Question 1183461: What interest rate is equivalent to an 11% discount rate in discounting amount for 3 years.
Answer by MathLover1(20850) About Me  (Show Source):
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Given : an 11% discount rate in discounting amounts for 3+years​

To Find : Equivalent interest rate
Solution:
11% discount rate in discounting amounts
=> P+=+100-11+=+89
A+=+100
n+=+3 Years
A+=+P+%281++%2B+R%2F100%29%5En
100+=+89+%28+1+%2B+R%2F100%29%5E3
100%2F89=+%28+1+%2B+R%2F100%29%5E3
1.123595505618=+%28+1+%2B+R%2F100%29%5E3
+root%283%2C1.123595505618%29+=+1+%2B+R%2F100
1.0396=+1+%2B+R%2F100
%281.0396-1%29100+=R+
R+=+3.96 %

answer: 3.96 % interest rate is equivalent to an 11% discount rate in discounting amounts for 3 years​