sandeep641 Posted January 31, 2009 Share Posted January 31, 2009 (2) susan cardinal deposited $ 500 in her savings account, and 6 years later, the account has $600 init. what compound rate of interest has susan earned on her capital? ans) 3.1 % how ? Quote Link to comment Share on other sites More sharing options...
Goldust Posted February 1, 2009 Share Posted February 1, 2009 sandeep641, I have noticed that you keep posting questions regarding compound interest. Might I suggest that you ask one of your friends/teachers to help you understand the formulae? While there will always be people here, who are more than willing to solve your questions, you will not really learn until you understand why the solutions are the way they are. Assuming that the interest is compounded yearly, we have 600 = 500(1+r)^6 i.e. 1.0308 = 1 + r. i.e. r = 0.0308 = 3.1% Quote Link to comment Share on other sites More sharing options...
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