You invested $3,000 in a savings account, and after 5 years, the balance grew to $4,665. The interest is compounded annually. What is the annual interest rate?Use the formula A=P(1+nr)nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. Round your answer to the nearest tenth.
Q. You invested $3,000 in a savings account, and after 5 years, the balance grew to $4,665. The interest is compounded annually. What is the annual interest rate?Use the formula A=P(1+nr)nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. Round your answer to the nearest tenth.
Identify values: Identify the values of A, P, n, and t. A = $4,665 P = $3,000 n = 1 (compounded annually) t = 5 years
Use formula: Use the formula A=P(1+nr)nt and substitute the values.4665=3000(1+1r)1⋅54665=3000(1+r)5
Isolate (1+r)5: Divide both sides by 3,000 to isolate (1+r)5.3,0004,665=(1+r)51.555=(1+r)5
Take fifth root: Take the fifth root of both sides to solve for (1+r). (1.555)51=1+r1.092=1+r
Solve for r: Subtract 1 from both sides to solve for r.1.092−1=rr=0.092
Convert to percentage: Convert r to a percentage by multiplying by 100.0.092×100=9.2%The annual interest rate, rounded to the nearest tenth, is approximately 9.2%.
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