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Sagot :
Answer:
The percent of interest is 12.3% per year
Step-by-step explanation:
According to the question Elwood invested 5000 $ in market account
The market account gives the compound interest annually
let p be the interest per year then
At the end of 1st year
amount =(1+0.p) x 5000 = 1.p x 5000
similarly at the end of 2nd year
amount =(1+0.p) x(1+0.p)x 5000 = [tex](1.p)^{2}[/tex] x 5000
similarly at the end of 3rd year
amount = 7100 $ = [tex](1.p)^3[/tex] x 5000
⇒ [tex]\frac{71}{50}[/tex] = [tex](1.p)^3[/tex]
1.392 = [tex](1.p)^3[/tex]
on further solving we get
1.p = [tex](1.42)^{1/3}[/tex] = 1.123
thus 1.p = 1 + 0.p = 1.123
thus p = 0.123
thus the percent of interest is 12.3% per year
Answer:
drop down 1 a slower rate per year
drop down 2 670
Step-by-step explanation:
as in three years you get $7100
you take that and subtract it by your starting amount (5000)
7100-5000= 2100
then divide 2100 by the number of years (3)
to get your annual rate of 700$
then you take the 8 year total and subtract it from your 3 year total
10350-7100= 3250
Then divide that by 5 because that how many years it has been
to get the annual rate of 650
making the 5 year rate slower.
The to find the average rate over all 8 year you take 10350 and subtract it from your starting number 5000
10350-5000= 5350
then take 5350 and divide it by the number of years (8)
you then get you average rate of 668.75
668.75=670
Hope this helps!
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