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The correct solution is 2.94% but I cannot figure out how to get that solution. Please help. Thank you so much.
You invest $3,200 in a savings account on January 1, 2004. On December 31, 2004, the account has accumulated to $3,294.08. What is the annual interest rate? CE)
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Answer #1

Let the annual interest rate be x

Original principal amount = $3,200

Now, 3,200(1+x) = 3,294.08

1+x = 1.0294

x = 0.0294 or 2.94%

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