Question 544766: Please help with this problem.
the interest rate "r" required to increase your investment "p" to the amount "a" in "t" years. What interest rate would be required to increase your investment $2700 to $3600 over three years?
Thanks
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! the interest rate "r" required to increase your investment "p" to the amount "a" in "t" years. What interest rate would be required to increase your investment $2700 to $3600 over three years?
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Using compound interest formula: a=p(1+r)^t, p=initial investment, r=interest per period, t=no of periods, a=amount after t periods
..
3600=2700(1+r)^3
3600/2700=(1+r)^3
4/3=(1+r)^3
Take cube root of both sides using calculator
1.1006≈1+r
r≈1.10061-1
r≈.1006 or rounded to 10%
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