John Invests 200 dollars for 4 years at r% compound interest. At the end of the 4 years they had 600 in their bank account. What was the interest rate?

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Solution

Solution

Rate : 31.60740 \dots %

Solution steps

Translate the problem into an equation:

600 = 200 (1 + \frac{r}{1})^{1 \cdot 4}

Solve for

r, 600 = 200 (1 + \frac{r}{1})^{1 \cdot 4} : r = 31.60740 \dots %

Rate : 31.60740 \dots %

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