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.)
The annual interest rate is 2%.
Three periods periodic interest x compounds each period
1861 = 1000 ( 1 + x)3
1861/1000 = (1+x)^3
1.23 = 1+x
x = .23 = 23%