If you deposit $1000 in a savings account with an interest rate of r compounded annually, then the balance in the account after 3 years is g

Question

If you deposit $1000 in a savings account with an interest rate of r compounded annually, then the balance in the account after 3 years is given by the function B(c)=1000(1+r)^3 where r is written as a decimal.
What is the formula for the interest rate, r; required to achieve a balance of B in the account after 3 years?

in progress 0
Ayla 3 weeks 2021-09-26T00:13:02+00:00 1 Answer 0

Answers ( )

    0
    2021-09-26T00:14:18+00:00

    Answer:

      r = ∛(B/1000) -1

    Step-by-step explanation:

    Solve for r by undoing the math operations that are done to it, in reverse order. The operations done to r are …

    • add 1
    • raise the sum to the 3rd power
    • multiply by 1000

    To undo these operations, we start from the bottom of the list and work up.

      B = 1000(1 +r)^3

      B/1000 = (1 +r)^3 . . . . undo the multiplication: divide by 1000

      ∛(B/1000) = 1 +r . . . . raise both sides to the 1/3 power to eliminate the exponent of 3

      ∛(B/1000) -1 = r . . . . . subtract 1 to undo the addition of 1

    The interest rate required to achieve a balance of B in 3 years is given by the formula …

      r = ∛(B/1000) -1

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )