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Mr. Madoff invests 1000 dollars in a fund that compounds annually at a constant interest rate. After three years, his investment has grown to 1861 dollars. What is the annual interest rate? (Round your answer to the nearest integer.)

 Oct 18, 2020
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1861 = 1000 (1+x)3

1861/1000   = (1+x)3   take cube root of both sides

1.23 = 1+x

x = .23 = 23 %

 
 Oct 18, 2020

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