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11 March, 10:16

You deposit $1400 into a savings account that earns simple annual interest. After 12 years, the balance in the account is $2408. What is the annual interest rate?

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  1. 11 March, 10:29
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    The formula is

    A=p (1+rt)

    A future value 2408

    P present value 1400

    R interest rate?

    T time 12 years

    Solve the formula for r

    R = ((A/p) - 1) : t

    R = ((2,408:1,400) - 1) : 12

    R=0.06*100

    R=6%
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