A bank account has a beginning balance of $560.00. After 6 months, the balance in the account has increased to $572.60. What interest rate is being earned annually on this account?
The formula is A=p (1+r)^t A future value 572.6 P present value 560 T time 6/12 =1/2=0.5 R interest rate? We need to solve for r R=(A/p)^(1/t)-1 R=(572.6÷560)^(1÷0.5)−1 R=0.0455×100 R=4.55%
