Zoey opened a savings account four years ago with a deposit of $935.15. The interest on the account cmopounds monthly. If Zoey's current account balance is $1,128.16, what is the interest rate on the account?
+36923 FV=PV(1+i)^n Where FV =1128.16 n = interest periods (48 months) i = interest PER PERIOD (one month)
and PV=935.15
1128.16 = 935.15(1+i)^48
(1128.16/935.15) = (1+i)^48 take the 48th root of both sides
1.0039167 = 1+i
.0039167 = i = interest PER MONTH Multiply by 12 to get annual i = 4.7% APR
