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?

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?

seratul · Answer

@jim_thompson5910

jim_thompson5910 · Answer

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

seratul · Answer

1600

jim_thompson5910 · Answer

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

seratul · Answer

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

jim_thompson5910 · Answer

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

seratul · Answer

2153.440308

seratul · Answer

Wait, does the answer happen to be .3459001926?

seratul · Answer

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

seratul · Answer

But i'm not one hundred percent sure.

jim_thompson5910 · Answer

so roughly 34.59%

seratul · Answer

So i am supposed to use that equation?

seratul · Answer

Alright, I understand. Thank you.