Respuesta :
The rate of interest will be 0.35.
What is compound interest?
Compound interest is the interest calculated on the principal and the interest accumulated over the previous period.
Compound interest formula
[tex]CI = P(1+\frac{r}{n}) ^{nt} -P[/tex]
and, the Amount is given by
[tex]A = P(1+\frac{r}{n} )^{nt}[/tex]
Where,
A is amount
P is principal
r is rate of interest
n is number of times interest is compounded per year
t is time
According to the given question
Principal, P = $210
Amount, A = $250
Time, t = 5 years
n = 1
Therefore, the interest rate is given by
Amount = [tex]P(1+\frac{r}{n}) ^{nt}[/tex]
⇒[tex]250 = 210(1+\frac{r}{1}) ^{5}[/tex]
⇒[tex]\frac{250}{210} =(1+r)^{5}[/tex]
⇒[tex]1.19 = (1+r)^{5}[/tex]
⇒[tex]\sqrt[5]{1.19} = 1+r\\[/tex]
⇒ 1.035 = 1 + r
⇒ r = 1.035 - 1
⇒ r = 0.35
Hence, the interest rate is o.35.
Learn more about compound interest here:
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