Homework Answers
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
6500=600*(1+r/100)^10
(6500/600)^(1/10)=(1+r/100)
(1+r/100)=1.2690
r=1.2690-1
=26.90%(Approx).
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