You started to plan for your retirement 2 years ago by investing into a individual retirement account (IRA). You deposited $2,520 dollars over the two year period and your money grew to $2,850 over that same period. Determine, by what percent, did your money grow by for the two year period. Round your answer to the nearest percent. a. 1.13% c. 13% b. 1.3% d. 130%

Question

Luis Morrison

Mathematics

11 June, 08:55

You started to plan for your retirement 2 years ago by investing into a individual retirement account (IRA). You deposited $2,520 dollars over the two year period and your money grew to $2,850 over that same period. Determine, by what percent, did your money grow by for the two year period. Round your answer to the nearest percent. a. 1.13% c. 13% b. 1.3% d. 130%

+1

Answers (2)

Know the Answer?

Bernie · Answer 1

Given:

initial amount deposited = $2,520

final amount acquired = $2,850

number of years = 2 years

Use the formula from economics,

F = P (1 + i) ^n

2,850 = 2520 (1 + i) ^ 2

solve for i

i = 6.3% per year

Gerardo Heath · Answer 2

The answer is c. 13%, i just took the quiz