A bank offers a savings account with an annual interest rate. For an initial investment , the capital after years is given by . What is the annual interest rate?
David invested in a fund with a guaranteed annual growth of .
Write an expression for the value of his fund after years.
The fund’s growth is calculated monthly.
We can rewrite the expression for the fund’s value as .
Use the new form of the expression to find the monthly growth rate. Give your answer to 3 significant figures.
Victoria has that she wants to invest. Her bank has several investment accounts to choose from, all compounding daily. Her goal is to have by the time she finishes graduate school in 6 years. Find, to the nearest hundredth of a percent, the minimum annual interest rate she would need? Solve the compound interest formula for the interest rate.