Solve the Problem $$A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$$

question 159

Multiple Choice

Solve the problem.
-Imelda inherited $20,000 and invested it in a mutual fund for two years. At the end of the two years, her investment had grown to $29,768. Find the annual interest rate that would yield this amount of money, if the
Interest is compounded annually. Use the formula,nnually. Use the formula, $$A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$$ to solve to solve.

• A)0.22%
• B)220%
• C)22%
• D)2.2%

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Definitions:

Statement of Cash Flows

A financial document detailing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.

Percentage Breakdown

A method of expressing components of a whole as percentages to show their relative sizes or contributions to the total.

Accounting Process

A systematic series of actions to record, summarize, and report the financial transactions of a business over a period, resulting in the preparation of financial statements.

Journals

Official records where business transactions are entered before they are transferred to accounts in the general ledger.