An investor deposited $10,500 in an account. At the end of year four, the account had accumulated $5,728.88. Over the first four years, the account earned ________ compounded annually.
A) 11.5%
B) 12.8%
C) 14.6%
D) 15.6%
E) 23.1%

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r)^n. Here, A = $5,728.88, P = $10,500, and n = 4. Solving for r gives approximately 11.5%.

An Investor Deposited $10,500 in an Account