Answer:
Annual interest rate = 9.58% (Approx.)
Step-by-step explanation:
Given:
Amount deposit in bank = $500
Number of ear money tripled = 12 year
Find:
Annual interest rate
Computation:
Future amount = 3 x Amount deposit in bank
Future amount = 3 x 500
Future amount = $1,500
A = P[1+r]ⁿ
1,500 = 500[1+r]¹²
1500 / 500 = [1+r]¹²
3 = [1+r]¹²
1.0958 = 1 + r
r = 1.0958 - 1
r = 0.0958
Annual interest rate = 9.58% (Approx.)
