Question

If i deposit money in a bank, and the bank tells me the growth of my investment will follow the equation a(t)=1600(8)^(t/7)
What is the annual percentage interest rate?

Answer 1

@jim_thompson5910

Answer 2

Let's say t = 0. What is the amount in the bank at this point in time?

Answer 3

1600

Answer 4

does it say how t is defined? Is t in months? years? or something else?

Answer 5

Whoops, forgot to mention. It's in years.

Answer 6

so one year later after t = 0 is t = 1. What is the amount in the account when t = 1?

Answer 7

2153.440308

Answer 8

Wait, does the answer happen to be .3459001926?

Answer 9

I think we are supposed to use the equation "b^(1/k)-1=r

Answer 10

But i'm not one hundred percent sure.

Answer 11

so roughly 34.59%

Answer 12

So i am supposed to use that equation?

Answer 13

Alright, I understand. Thank you.