Question

Lauren is going to invest $740 and leave it in an account for 9 years. Assuming the interest is compounded monthly, what interest rate, to the nearest tenth of a percent, would be required in order for Lauren to end up with $920

Answer 1

Here,

P=740 (In $)

t=9 (in years)

n=12 (as the interest is compounded monthly

r=?

A= 920 (In $)

Using

Hence interest rate is 2.4%

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