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ch (d) P $3,833 (a) 6.5% (c) 9.02% 2:13 At what annual interest rate will $1,200 invested today be worth $2,500 in 12 years?
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Answer #1

Answer is option A)

According to compound interest formula;

A= P(1+r)t, A= amount, P = principal amount ,

r = interest rate in decimal , t= time period

So, 2500 = 1200(1+r)12

So r = 6.308 %

So answer in option A approximates the corret answer

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