For Accounts Where Interest Is Compounded Annually, the Amount a Accumulated

question 57

Multiple Choice

For accounts where interest is compounded annually, the amount A accumulated or due depends on the principal p, interest rate r, and the time t in years according to the formula A = p(1 + r) ^t. What interest rate will insure a $1700 deposit will be worth $2342.24 in 5.5 years? Round your answer to the nearest tenth of a percent.

• A) 6.0%
• B) 6.5%
• C) 7.0%
• D) 7.5%

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Definitions:

Great Migration

The movement of over six million African Americans from the rural Southern United States to the urban Northeast, Midwest, and West from about 1916 to 1970, seeking better economic opportunities and escaping racial discrimination.

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The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

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