Use) #A = P_1(1+r)^2 + P_2(1+r)#?
A firm deposit 3200 into savings account for 2 years, at the begging of second year, an additional 1800 is deposited. If a total of 5207 is in the account at the end, what is the annual interest rate.
answer should be 2.5%
A firm deposit 3200 into savings account for 2 years, at the begging of second year, an additional 1800 is deposited. If a total of 5207 is in the account at the end, what is the annual interest rate.
answer should be 2.5%
1 Answer
Nov 23, 2017
This equation is a quadratic in 1+r
Explanation:
Make the substitute
I'll just quickly use the quadratic formula rather than solving for x step by step.
Plug in your numbers
And the result is 0.025, which if we say