At what annual rate would $200.00 grow to $497.60 in five years?
A)19 percent
B)18 percent
C)20 percent
D)22 percent

Question

Quizplus · Accepted Answer

The correct answer is C) 20 percent.To calculate the annual rate, we can use the formula:A = P(1 + r)^nwhere:A is the future valueP is the present valuer is the annual raten is the number of yearsIn this case, we have:A = $497.60P = $200.00n = 5Substituting these values into the formula, we get:$497.60 = $200.00(1 + r)^5Dividing both sides by $200.00, we get:(1 + r)^5 = 2.488Taking the fifth root of both sides, we get:1 + r = 1.2Subtracting 1 from both sides, we get:r = 0.2 or 20%Therefore, the annual rate would be 20%.

At What Annual Rate Would $200