Gavin owes the bank $63,000. After 10 years, Gavin owes $93,255. Gavin knows the debt grows with an interest rate that compounds once every year. What is the rate of interest (as a percentage) ?

Question

Beckham Foley

Mathematics

9 December, 20:49

Gavin owes the bank $63,000. After 10 years, Gavin owes $93,255. Gavin knows the debt grows with an interest rate that compounds once every year. What is the rate of interest (as a percentage) ?

+1

Answers (1)

Know the Answer?

Dashawn Benjamin · Answer 1

1,616.60

we know that

The compound interest formula is equal to

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

substitute in the formula above