Sal currently has an account balance of $2,835.48. He opened the account five years ago with a deposit of $2310.72. If the interest compounds twice a year, what is the interest rate on the account?
The formula is A=p (1+r/k)^kt A future value 2835.48 P present value 2310.72 R interest rate? K compounded twice a year 2 T time 5 years Solve the formula for R R= [(A/p)^(1/kt)-1]×k R=((2,835.48÷2,310.72)^(1÷10)−1)×2 R=0.0414×100 R=4.14%
