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16 May, 13:17

Over two summers, Ray saved $900 and $500. The polynomial 900x2 + 500x represents his savings at the beginning of the third year, where x is the growth factor. (The interest rate r is x - 1.) What is the interest rate he needs to start the third year with $1600 in savings?

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  1. 16 May, 17:06
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    900x^2 + 500x = 1600

    900x^2 + 500x - 1600 = 0

    9x^2 + 5x - 16 = 0

    x = 1.084

    r = x - 1 = 1.084 - 1 = 0.084

    Interest rate = 8.4%
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