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21 February, 18:54

Gavin owes the bank $63,000. After 10 years, Gavin owes $93,255. Gavin knows the debt grows with an interest rate that compounds once every year. What is the rate of interest (as a percentage) ?

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  1. 21 February, 22:33
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    1,616.60

    we know that

    The compound interest formula is equal to

    where

    A is the Final Investment Value

    P is the Principal amount of money to be invested

    r is the rate of interest in decimal

    t is Number of Time Periods

    n is the number of times interest is compounded per year

    in this problem we have

    substitute in the formula above
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