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20 January, 14:38

Nigel currently has a account balance of 668.47 in an account held held for 15 years. He opened the account with an initial deposit of $497. What is the simple interest rate on the account

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  1. 20 January, 15:00
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    The formula is

    A=p (1+rt)

    A future value 668.47

    P principle 497

    R interest rate?

    T time 15 years

    Solve the formula for r

    R=[ (A/P) - 1]:t

    R = ((668.47:497) - 1) : 15

    R=0.023*100

    R=2.3%
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