Question

Help on these two please?

Zoey opened a savings account four years ago with a deposit of $935.15. The interest on the account compounds monthly. If Zoey’s current account balance is $1,128.16, what is the interest rate on the account?

0.4%

4.7%

14.2%

18.9%

Answer 1

Taylor has a credit card with an interest rate of 24.5% compounded monthly that she must pay off in seven years. If her balance on the credit card is $2,345, what must her monthly payment be?

$27.92

$58.61

$222.31

$732.52

Answer 2

use the compounding interest formula:
FV = PV(1+i)^n
where
FV means future value
PV means presesnt value
i means interest in decimal form
and
n means month or year depending on the question

Answer 3

Could you go the the solution step by step please?

Answer 4

?

Answer 5

ya
so we have:
Zoey opened a savings account four years ago with a deposit of $935.15. [this is the PV, present value, or starting value. so, PV=935.15]

The interest on the account compounds monthly. [This means we are going to use months, not years for n. the question said 4 years ago, so we will do 4years*12 = 48 months, so n=48]

If Zoey’s current account balance is $1,128.16, [This means we will use 1128.16=FV]

what is the interest rate on the account? [this means we have to find what 'i' is in the equation]

can you rewrite the equation:
FV = PV(1+i)^n
and substitute in the numbers for the terms which I just showed you?