An investment has grown from $100.00 to $130.00 or by 30% over four years. What annual increase gives a 30% increase over four years?
A) 7.50%
B) 6.30%
C) 6.78%
D) 7.24%

Name: An investment has grown from $100.00 to $130.00 or by 30% over four years. What annual increase gives a 30% increase over four years? A) 7.50% B) 6.30% C) 6.78% D) 7.24%
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Question

Quizplus · Accepted Answer

The annual increase can be found using the formula for compound interest: $130 = 100(1 + r)^4$. Solving for $r$, we get $r \approx 0.0678$, or 6.78%.

An Investment Has Grown from $100