Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959,  and number of years (t) = 8.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959,  and number of years (t) = 8. 

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Compound interest is the interest computed on the principal and the interest accumulated over the previous time. It is different from simple interest, where interest is not added to the principal while computing the interest the next time. 

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