Question

​(Solving for r in compound interest​) If you were offered ​$2,191.82 8 years from now in...

​(Solving

for r in compound

interest​)

If you were offered

​$2,191.82 8 years from now in return for an investment of

$ 1,100 ​currently, what annual rate of interest would you earn if you took the​ offer?

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Answer #1

We see that the rate of interest earned is given as equal to=(2191.82/1100)^(1/8)-1
=9.00%

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