Question 544766
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
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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%