Given that $F V = 26 t + 650$ , for what interest rate is this the equation of future value (in dollars) as a function of time t (in years) (Round your answer to the nearest 0.1%.)
A) $r = 4 \%$
B) $r = 1.0 \%$
C) $r = 2.6 \%$
D) $r = 6.5 \%$
E) $r = 0.4 \%$

Question

Given that $F V = 26 t + 650$ , for what interest rate is this the equation of future value (in dollars) as a function of time t (in years)  (Round your answer to the nearest 0.1%.)  
A) $r = 4 \%$
B)  $r = 1.0 \%$
C)   $r = 2.6 \%$
D)  $r = 6.5 \%$
E)  $r = 0.4 \%$

Quizplus · Accepted Answer

The equation $FV = 26t + 650$ represents a linear relationship between the future value (FV) and time (t), where 650 is the initial amount (the principal, P) and 26 is the amount the future value increases per year, which can be seen as the interest earned per year. To find the interest rate, we divide the annual increase by the principal: $ \frac{26}{650} = 0.04 $, which corresponds to an interest rate of 4%.

Given That FV=26t+650F V = 26 t + 650FV=26t+650 , for What Interest Rate Is This the Equation of for What

Given That $F V = 26 t + 650$ , for What Interest Rate Is This the Equation of for What