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Yolo4mecuite
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Alan saved $50,000 for 10 tens years. He earned $25,000 interest from his savings account. what was his bank interest rate:
A. 20% B. 200% C. 5% D. 0.05%
 one year ago
 one year ago
Yolo4mecuite Group Title
Alan saved $50,000 for 10 tens years. He earned $25,000 interest from his savings account. what was his bank interest rate: A. 20% B. 200% C. 5% D. 0.05%
 one year ago
 one year ago

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bbnl1990 Group TitleBest ResponseYou've already chosen the best response.1
is this simple or compound interest?
 one year ago

Yolo4mecuite Group TitleBest ResponseYou've already chosen the best response.0
I'm not sure it doesn't say....
 one year ago

bbnl1990 Group TitleBest ResponseYou've already chosen the best response.1
I'll assume it's compound. :) When the interest is compounded once a year: A = P(1 + r)n Where: P is the principal (the initial amount you borrow or deposit) r is the annual rate of interest (percentage) n is the number of years the amount is deposited or borrowed for. A is the amount of money accumulated after n years, including interest. So... (50000+25000)=50000(1+r)^10 75000=50000(1+r)^10 1.5 = (1+r)^10 (1.5)^(1/10)=1+r Solving for r, we get r=0.041379... so the rate is roughly 4.14% :)
 one year ago

Yolo4mecuite Group TitleBest ResponseYou've already chosen the best response.0
Ok thanks
 one year ago
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