Suppose a deposit of $2,500$2,500 in a savings account that paid an annual interest rate rr (compounded yearly) is worth $2,905$2,905 after 22 years. Using the formula A=P(1+r)tA=P(1+r)t, we have2,905=2,500(1+r)22,905=2,500(1+r)2Solve for rr to find the annual interest rate (to the nearest tenth).The annual interest rate, rr, is percent.

Suppose a deposit of $2,500$2,500 in a savings account that paid an annual interest rate rr (compounded yearly) is worth $2,905$2,905 after 22 years. Using the formula A=P(1+r)tA=P(1+r)t, we have2,905=2,500(1+r)22,905=2,500(1+r)2Solve for rr to find the annual interest rate (to the nearest tenth).The annual interest rate, rr, is percent.

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter11: Exponential And Logarithmic Functions

Section11.2: Applications Of Exponential Functions

Problem 27PS

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