complete the table for a savings account subject to 360 comp

complete the table for a savings account subject to 360 compounding yearly.

let A represent the accumulated amount, P the amount invested, n the number of compounding periods, r the annual interest rate, and t the time. find the annual interest rate, r.

r= ___%

(do not round until the final answer. then round to one decimal place as needed)

Solution

A = 1300
P = 700
t = 3*360 = 1080 bcoz we are compounding daily
r = r/360

A = P(1 + r)^t

1300 = 700(1 + r/360)^(1080)

13/7 = (1 + r/360)^1080

(13/7)^(1/1080) = 1 + r/360

1.0005733487538264 = 1 + r/360

So,
r = 0.2% annual rate ---> ANS