Question 2 of 7 If an investment grew to $12,500 in 3 years and the interest amount earned was $1,350, calculate the nominal interest rate compounded monthly. 0.00 % Round to two decimal places
Added by Joel D.
Close
Step 1
We know the final amount (A) is $12,500 and the interest earned (I) is $1,350. We can calculate the principal by subtracting the interest from the final amount: \[ P = A - I \] \[ P = \$12,500 - \$1,350 \] \[ P = \$11,150 \] Show more…
Show all steps
Your feedback will help us improve your experience
Daniel Carr and 82 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Blake invested $6,000 at 4.79% compounded monthly. Calculate the amount it grows to by the end of 3 years. Round to the nearest cent. b. Calculate the amount of interest earned during the 3-year period.
Tim T.
Find the interest rate for $7000 deposit accumulating to 7606$, compounded annually for 9 years. The interest rate is %. (Do not round until the final answer. Then round to two decimal places as needed.)
Gregory H.
If you want to have a million dollars 36 years from today, how much should you invest in your savings account that earns interest of 2.06% compounded monthly? Round to the nearest cent
Mukesh D.
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD