Question

Sal currently has an account balance of $2,835.48. He opened the account five years ago with a deposit of $2,310.72. If the interest compounds twice a year, what is the interest rate on the account?

Answer 1

2835.48= 2310.72(1+r/2)^10

1.2271 = (1+r/2)^10

1.02067 = 1+ r/2

.02067 = r/2

r = 0.04135