If you deposit $1000 in 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 interest rate will yield a balance of $1100 after 3 years?
A) 3.23 %
B) 3.33 %
C ) 3.63 %
D ) 3.66 %

Question

If you deposit $1000 in 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 interest rate will yield a balance of $1100 after 3 years?
A) 3.23 % 
B) 3.33 % 
C ) 3.63 % 
D ) 3.66 %

perl · Answer

Solve the equation
$$\Large 1100 = 1000 (1+r)^3 $$

perl · Answer

Do you see how I got that equation?